PFFA vs. WDI

Last updated Jun 4, 2026

PFFA (Virtus InfraCap U.S. Preferred Stock ETF) and WDI (Western Asset Diversified Income Fund) are both funds - PFFA is a Preferred Stock/Convertible Bonds fund actively managed by Virtus Investment Partners, while WDI is a Multisector Bonds fund managed by Franklin Templeton. Over the past 3 years, PFFA returned 14.46%/yr vs 13.68%/yr for WDI. At a 0.41 correlation, their price movements are largely independent. PFFA charges 1.47%/yr vs 1.73%/yr for WDI.

Performance

PFFA vs. WDI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus InfraCap U.S. Preferred Stock ETF (PFFA) and Western Asset Diversified Income Fund (WDI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PFFA achieves a 3.08% return, which is significantly higher than WDI's 1.58% return.

PFFA

• 1D: -0.70%
• 1M: -0.26%
• YTD: 3.08%
• 6M: 4.03%
• 1Y: 14.79%
• 3Y*: 14.46%
• 5Y*: 6.57%
• 10Y*: —

WDI

• 1D: -0.59%
• 1M: -2.23%
• YTD: 1.58%
• 6M: -0.30%
• 1Y: 2.75%
• 3Y*: 13.68%
• 5Y*: —
• 10Y*: —

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

PFFA vs. WDI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
PFFA Virtus InfraCap U.S. Preferred Stock ETF	3.08%	8.22%	16.11%	26.45%	-20.91%	4.54%
WDI Western Asset Diversified Income Fund	1.58%	10.64%	13.88%	25.11%	-23.30%	-5.66%

Correlation

The correlation between PFFA and WDI is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (All Time) Calculated using the full available price history since Jun 28, 2021	0.41

Return for Risk

PFFA vs. WDI — Risk / Return Rank

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

PFFA

PFFA Risk / Return Rank: 56
PFFA Sharpe Ratio Rank: 61
PFFA Sortino Ratio Rank: 63
PFFA Omega Ratio Rank: 64
PFFA Calmar Ratio Rank: 45
PFFA Martin Ratio Rank: 46

WDI

WDI Risk / Return Rank: 4
WDI Sharpe Ratio Rank: 4
WDI Sortino Ratio Rank: 4
WDI Omega Ratio Rank: 4
WDI Calmar Ratio Rank: 4
WDI Martin Ratio Rank: 4

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.

PFFA vs. WDI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus InfraCap U.S. Preferred Stock ETF (PFFA) and Western Asset Diversified Income Fund (WDI). 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.

	PFFA	WDI	Difference
Sharpe ratio: Return per unit of total volatility	2.12	0.30	+1.82
Sortino ratio: Return per unit of downside risk	3.00	0.48	+2.52
Omega ratio: Gain probability vs. loss probability	1.40	1.06	+0.34
Calmar ratio: Return relative to maximum drawdown	2.29	0.33	+1.96
Martin ratio: Return relative to average drawdown	7.79	0.83	+6.96
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PFFA vs. WDI - Sharpe Ratio Comparison

The current PFFA Sharpe Ratio is 2.12, which is higher than the WDI Sharpe Ratio of 0.30. The chart below compares the historical Sharpe Ratios of PFFA and WDI, 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

	PFFA	WDI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.12	0.30	+1.82
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.57	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.23	+0.01

Drawdowns

PFFA vs. WDI - Drawdown Comparison

The maximum PFFA drawdown since its inception was -70.52%, which is greater than WDI's maximum drawdown of -32.45%. Use the drawdown chart below to compare losses from any high point for PFFA and WDI.

Drawdown Indicators

	PFFA	WDI	Difference
Max Drawdown Largest peak-to-trough decline	-70.52%	-32.45%	-38.07%
Max Drawdown (1Y) Largest decline over 1 year	-6.49%	-8.47%	+1.98%
Max Drawdown (3Y) Largest decline over 3 years	-12.15%	-14.14%	+1.99%
Max Drawdown (5Y) Largest decline over 5 years	-22.70%	—	—
Current Drawdown Current decline from peak	-1.50%	-3.49%	+1.99%
Average Drawdown Average peak-to-trough decline	-6.65%	-10.41%	+3.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.90%	3.31%	-1.41%

Volatility

PFFA vs. WDI - Volatility Comparison

The current volatility for Virtus InfraCap U.S. Preferred Stock ETF (PFFA) is 1.87%, while Western Asset Diversified Income Fund (WDI) has a volatility of 3.39%. This indicates that PFFA experiences smaller price fluctuations and is considered to be less risky than WDI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PFFA	WDI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.87%	3.39%	-1.52%
Volatility (6M) Calculated over the trailing 6-month period	5.68%	7.71%	-2.03%
Volatility (1Y) Calculated over the trailing 1-year period	7.02%	9.30%	-2.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.51%	12.97%	-1.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.84%	12.97%	+18.87%

PFFA vs. WDI - Expense Ratio Comparison

PFFA has a 1.47% expense ratio, which is lower than WDI's 1.73% expense ratio.

Dividends

PFFA vs. WDI - Dividend Comparison

PFFA's dividend yield for the trailing twelve months is around 9.62%, less than WDI's 13.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
PFFA Virtus InfraCap U.S. Preferred Stock ETF	9.62%	9.47%	9.18%	9.56%	10.75%	7.64%	8.54%	10.02%	5.15%
WDI Western Asset Diversified Income Fund	13.27%	13.98%	12.32%	11.45%	11.40%	3.19%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PFFA and WDI in my portfolio?

PFFA and WDI have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFFA or WDI?

WDI has higher volatility (3.39%) compared to PFFA (1.87%). In terms of maximum drawdown, PFFA dropped -70.52% vs WDI's -32.45%.

Which has better risk-adjusted returns?

PFFA currently has the higher Sharpe Ratio (2.12 vs 0.30), 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.