SHLMX vs. SHMDX

Last updated Jun 4, 2026

SHLMX (Virtus Stone Harbor Local Markets) and SHMDX (Virtus Stone Harbor Emerging Mkts Debt) are both Emerging Markets Bonds funds from Stone Harbor. Over the past 10 years, SHLMX returned 2.22%/yr vs 4.39%/yr for SHMDX. A 0.58 correlation means they provide meaningful diversification when combined. SHLMX charges 1.01%/yr vs 0.73%/yr for SHMDX.

Performance

SHLMX vs. SHMDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus Stone Harbor Local Markets (SHLMX) and Virtus Stone Harbor Emerging Mkts Debt (SHMDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SHLMX achieves a 1.52% return, which is significantly lower than SHMDX's 4.06% return. Over the past 10 years, SHLMX has underperformed SHMDX with an annualized return of 2.22%, while SHMDX has yielded a comparatively higher 4.39% annualized return.

SHLMX

• 1D: 0.23%
• 1M: 1.64%
• YTD: 1.52%
• 6M: 2.46%
• 1Y: 10.89%
• 3Y*: 7.05%
• 5Y*: 1.08%
• 10Y*: 2.22%

SHMDX

• 1D: 0.25%
• 1M: 1.37%
• YTD: 4.06%
• 6M: 4.62%
• 1Y: 16.04%
• 3Y*: 13.57%
• 5Y*: 3.47%
• 10Y*: 4.39%

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

SHLMX vs. SHMDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SHLMX Virtus Stone Harbor Local Markets	1.52%	19.32%	-5.84%	12.02%	-11.67%	-8.23%	1.87%	13.08%	-9.29%	15.36%
SHMDX Virtus Stone Harbor Emerging Mkts Debt	4.06%	15.13%	8.90%	14.81%	-19.74%	-2.52%	7.06%	15.20%	-7.86%	11.58%

Correlation

The correlation between SHLMX and SHMDX is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Jan 4, 2011	0.58

The correlation between SHLMX and SHMDX has been stable across timeframes, ranging from 0.54 to 0.63 - a consistent structural relationship.

Return for Risk

SHLMX vs. SHMDX — Risk / Return Rank

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

SHLMX

SHLMX Risk / Return Rank: 29
SHLMX Sharpe Ratio Rank: 32
SHLMX Sortino Ratio Rank: 33
SHLMX Omega Ratio Rank: 38
SHLMX Calmar Ratio Rank: 20
SHLMX Martin Ratio Rank: 21

SHMDX

SHMDX Risk / Return Rank: 92
SHMDX Sharpe Ratio Rank: 96
SHMDX Sortino Ratio Rank: 97
SHMDX Omega Ratio Rank: 95
SHMDX Calmar Ratio Rank: 82
SHMDX Martin Ratio Rank: 87

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.

SHLMX vs. SHMDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus Stone Harbor Local Markets (SHLMX) and Virtus Stone Harbor Emerging Mkts Debt (SHMDX). 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.

	SHLMX	SHMDX	Difference
Sharpe ratio Return per unit of total volatility	1.65	3.59	-1.94
Sortino ratio Return per unit of downside risk	2.39	5.94	-3.55
Omega ratio Gain probability vs. loss probability	1.33	1.81	-0.48
Calmar ratio Return relative to maximum drawdown	1.62	3.83	-2.20
Martin ratio Return relative to average drawdown	5.48	16.98	-11.50
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SHLMX vs. SHMDX - Sharpe Ratio Comparison

The current SHLMX Sharpe Ratio is 1.65, which is lower than the SHMDX Sharpe Ratio of 3.59. The chart below compares the historical Sharpe Ratios of SHLMX and SHMDX, 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

	SHLMX	SHMDX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.65	3.59	-1.94
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.14	0.50	-0.37
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.25	0.58	-0.33
Sharpe Ratio (All Time) Calculated using the full available price history	0.02	0.53	-0.52

Drawdowns

SHLMX vs. SHMDX - Drawdown Comparison

The maximum SHLMX drawdown since its inception was -37.35%, roughly equal to the maximum SHMDX drawdown of -35.83%. Use the drawdown chart below to compare losses from any high point for SHLMX and SHMDX.

Drawdown Indicators

	SHLMX	SHMDX	Difference
Max Drawdown Largest peak-to-trough decline	-37.35%	-35.83%	-1.52%
Max Drawdown (1Y) Largest decline over 1 year	-6.65%	-4.33%	-2.32%
Max Drawdown (3Y) Largest decline over 3 years	-9.99%	-6.23%	-3.76%
Max Drawdown (5Y) Largest decline over 5 years	-25.22%	-31.98%	+6.76%
Max Drawdown (10Y) Largest decline over 10 years	-26.60%	-31.98%	+5.38%
Current Drawdown Current decline from peak	-10.46%	0.00%	-10.46%
Average Drawdown Average peak-to-trough decline	-18.50%	-5.94%	-12.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.97%	0.97%	+1.00%

Volatility

SHLMX vs. SHMDX - Volatility Comparison

Virtus Stone Harbor Local Markets (SHLMX) has a higher volatility of 2.14% compared to Virtus Stone Harbor Emerging Mkts Debt (SHMDX) at 1.55%. This indicates that SHLMX's price experiences larger fluctuations and is considered to be riskier than SHMDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SHLMX	SHMDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.14%	1.55%	+0.59%
Volatility (6M) Calculated over the trailing 6-month period	5.73%	3.86%	+1.87%
Volatility (1Y) Calculated over the trailing 1-year period	6.57%	4.63%	+1.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.01%	6.94%	+1.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.95%	7.60%	+1.35%

SHLMX vs. SHMDX - Expense Ratio Comparison

SHLMX has a 1.01% expense ratio, which is higher than SHMDX's 0.73% expense ratio.

Dividends

SHLMX vs. SHMDX - Dividend Comparison

SHLMX's dividend yield for the trailing twelve months is around 10.00%, more than SHMDX's 6.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SHLMX Virtus Stone Harbor Local Markets	10.00%	10.16%	0.00%	0.00%	0.00%	0.00%	0.00%	0.11%	1.99%	1.04%	0.00%	0.00%
SHMDX Virtus Stone Harbor Emerging Mkts Debt	6.15%	6.21%	6.73%	8.10%	10.70%	4.78%	5.24%	5.51%	6.80%	6.12%	6.72%	6.65%

Frequently Asked Questions

Can I hold both SHLMX and SHMDX in my portfolio?

SHLMX and SHMDX have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHLMX or SHMDX?

SHLMX has higher volatility (2.14%) compared to SHMDX (1.55%). In terms of maximum drawdown, SHLMX dropped -37.35% vs SHMDX's -35.83%.

Which has better risk-adjusted returns?

SHMDX currently has the higher Sharpe Ratio (3.59 vs 1.65), 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.