MWSTX vs. GMODX

Last updated Jun 5, 2026

MWSTX (Metropolitan West Strategic Income Fund) and GMODX (GMO Opportunistic Income Fund) are both Nontraditional Bonds funds. Over the past 10 years, MWSTX returned 2.87%/yr vs 4.24%/yr for GMODX. At a 0.41 correlation, their price movements are largely independent. MWSTX charges 1.04%/yr vs 0.47%/yr for GMODX.

Performance

MWSTX vs. GMODX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Metropolitan West Strategic Income Fund (MWSTX) and GMO Opportunistic Income Fund (GMODX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MWSTX achieves a 1.30% return, which is significantly higher than GMODX's 1.06% return. Over the past 10 years, MWSTX has underperformed GMODX with an annualized return of 2.87%, while GMODX has yielded a comparatively higher 4.24% annualized return.

MWSTX

• 1D: -0.16%
• 1M: 0.42%
• YTD: 1.30%
• 6M: 1.62%
• 1Y: 5.51%
• 3Y*: 5.81%
• 5Y*: 2.08%
• 10Y*: 2.87%

GMODX

• 1D: -0.04%
• 1M: 0.07%
• YTD: 1.06%
• 6M: 1.36%
• 1Y: 4.53%
• 3Y*: 5.84%
• 5Y*: 3.85%
• 10Y*: 4.24%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MWSTX vs. GMODX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MWSTX Metropolitan West Strategic Income Fund	1.30%	6.93%	5.17%	7.39%	-9.59%	1.18%	4.92%	5.84%	1.03%	3.81%
GMODX GMO Opportunistic Income Fund	1.06%	6.47%	6.11%	7.07%	-2.09%	2.83%	3.34%	3.83%	4.01%	6.41%

Correlation

The correlation between MWSTX and GMODX is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since Jan 4, 2012	0.41

Over the past year, MWSTX and GMODX have become more correlated (0.69) than their long-term average of 0.41, meaning their price movements have been converging.

Return for Risk

MWSTX vs. GMODX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MWSTX

MWSTX Risk / Return Rank: 81
MWSTX Sharpe Ratio Rank: 63
MWSTX Sortino Ratio Rank: 85
MWSTX Omega Ratio Rank: 83
MWSTX Calmar Ratio Rank: 86
MWSTX Martin Ratio Rank: 86

GMODX

GMODX Risk / Return Rank: 97
GMODX Sharpe Ratio Rank: 96
GMODX Sortino Ratio Rank: 98
GMODX Omega Ratio Rank: 95
GMODX Calmar Ratio Rank: 97
GMODX Martin Ratio Rank: 98

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MWSTX vs. GMODX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Metropolitan West Strategic Income Fund (MWSTX) and GMO Opportunistic Income Fund (GMODX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	MWSTX	GMODX	Difference
Sharpe ratio: Return per unit of total volatility	2.31	3.54	-1.23
Sortino ratio: Return per unit of downside risk	4.04	6.28	-2.24
Omega ratio: Gain probability vs. loss probability	1.56	1.78	-0.22
Calmar ratio: Return relative to maximum drawdown	4.07	7.30	-3.23
Martin ratio: Return relative to average drawdown	16.10	30.63	-14.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MWSTX vs. GMODX - Sharpe Ratio Comparison

The current MWSTX Sharpe Ratio is 2.31, which is lower than the GMODX Sharpe Ratio of 3.54. The chart below compares the historical Sharpe Ratios of MWSTX and GMODX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MWSTX	GMODX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.31	3.54	-1.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	1.01	-0.47
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	1.40	-0.56
Sharpe Ratio (All Time) Calculated using the full available price history	0.93	1.38	-0.45

Drawdowns

MWSTX vs. GMODX - Drawdown Comparison

The maximum MWSTX drawdown since its inception was -37.03%, which is greater than GMODX's maximum drawdown of -8.79%. Use the drawdown chart below to compare losses from any high point for MWSTX and GMODX.

Drawdown Indicators

	MWSTX	GMODX	Difference
Max Drawdown Largest peak-to-trough decline	-37.03%	-8.79%	-28.24%
Max Drawdown (1Y) Largest decline over 1 year	-1.45%	-0.65%	-0.80%
Max Drawdown (3Y) Largest decline over 3 years	-3.12%	-4.97%	+1.85%
Max Drawdown (5Y) Largest decline over 5 years	-13.75%	-5.79%	-7.96%
Max Drawdown (10Y) Largest decline over 10 years	-13.75%	-8.79%	-4.96%
Current Drawdown Current decline from peak	-0.16%	-0.12%	-0.04%
Average Drawdown Average peak-to-trough decline	-3.08%	-0.70%	-2.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.36%	0.16%	+0.20%

Volatility

MWSTX vs. GMODX - Volatility Comparison

Metropolitan West Strategic Income Fund (MWSTX) has a higher volatility of 0.78% compared to GMO Opportunistic Income Fund (GMODX) at 0.46%. This indicates that MWSTX's price experiences larger fluctuations and is considered to be riskier than GMODX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MWSTX	GMODX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.78%	0.46%	+0.32%
Volatility (6M) Calculated over the trailing 6-month period	1.83%	0.91%	+0.92%
Volatility (1Y) Calculated over the trailing 1-year period	2.55%	1.35%	+1.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.88%	3.82%	+0.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.43%	3.04%	+0.39%

MWSTX vs. GMODX - Expense Ratio Comparison

MWSTX has a 1.04% expense ratio, which is higher than GMODX's 0.47% expense ratio.

Dividends

MWSTX vs. GMODX - Dividend Comparison

MWSTX's dividend yield for the trailing twelve months is around 5.39%, more than GMODX's 5.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GMODX GMO Opportunistic Income Fund	5.01%	4.99%	5.28%	6.17%	5.44%	2.10%	4.15%	5.69%	4.35%	2.66%	2.55%	1.71%
MWSTX Metropolitan West Strategic Income Fund	5.39%	5.69%	6.19%	6.26%	8.59%	7.70%	5.45%	4.14%	4.23%	3.48%	4.24%	2.97%

Frequently Asked Questions

Can I hold both MWSTX and GMODX in my portfolio?

MWSTX and GMODX have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MWSTX or GMODX?

MWSTX has higher volatility (0.78%) compared to GMODX (0.46%). In terms of maximum drawdown, MWSTX dropped -37.03% vs GMODX's -8.79%.

Which has better risk-adjusted returns?

GMODX currently has the higher Sharpe Ratio (3.54 vs 2.31), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.