WATFX vs. IUSB
WATFX (Western Asset Core Bond Fund) and IUSB (iShares Core Universal USD Bond ETF) are both funds - WATFX is a Intermediate Core Bond fund managed by Franklin Templeton, while IUSB is a Intermediate Core-Plus Bond fund tracking the Bloomberg U.S. Universal Index. Over the past 10 years, WATFX returned 1.29%/yr vs 1.78%/yr for IUSB. Their correlation of 0.85 suggests significant overlap in exposure. WATFX charges 0.46%/yr vs 0.06%/yr for IUSB.
Performance
WATFX vs. IUSB - Performance Comparison
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Returns By Period
In the year-to-date period, WATFX achieves a -0.45% return, which is significantly lower than IUSB's 0.01% return. Over the past 10 years, WATFX has underperformed IUSB with an annualized return of 1.29%, while IUSB has yielded a comparatively higher 1.78% annualized return.
WATFX
- 1D
- -0.19%
- 1M
- -0.38%
- 6M
- -0.54%
- YTD
- -0.45%
- 1Y
- 3.94%
- 3Y*
- 3.87%
- 5Y*
- -1.29%
- 10Y*
- 1.29%
IUSB
- 1D
- -0.34%
- 1M
- -0.66%
- 6M
- -0.21%
- YTD
- 0.01%
- 1Y
- 3.95%
- 3Y*
- 4.28%
- 5Y*
- 0.15%
- 10Y*
- 1.78%
WATFX vs. IUSB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
WATFX Western Asset Core Bond Fund | -0.45% | 8.01% | 0.44% | 5.52% | -17.32% | -2.13% | 9.12% | 10.44% | -0.62% | 5.21% |
IUSB iShares Core Universal USD Bond ETF | 0.01% | 7.38% | 2.11% | 6.23% | -13.04% | -1.33% | 7.62% | 9.13% | -0.27% | 3.82% |
Correlation
The correlation between WATFX and IUSB is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.90 |
Correlation (All Time) Calculated using the full available price history since Jun 12, 2014 | 0.85 |
The correlation between WATFX and IUSB has been stable across timeframes, ranging from 0.85 to 0.95 - a consistent structural relationship.
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Return for Risk
WATFX vs. IUSB — Risk / Return Rank
WATFX
IUSB
WATFX vs. IUSB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Western Asset Core Bond Fund (WATFX) and iShares Core Universal USD Bond ETF (IUSB). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| WATFX | IUSB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.25 | ||
| Sortino ratioReturn per unit of downside risk | -0.37 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.19 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.14 | 1.57 | -0.43 |
| Martin ratioReturn relative to average drawdown | 3.11 | 4.42 | -1.30 |
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Drawdowns
WATFX vs. IUSB - Drawdown Comparison
The maximum WATFX drawdown since its inception was -23.69%, which is greater than IUSB's maximum drawdown of -17.90%. Use the drawdown chart below to compare losses from any high point for WATFX and IUSB.
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Drawdown Indicators
| WATFX | IUSB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.69% | -17.90% | -5.79% |
Max Drawdown (1Y)Largest decline over 1 year | -3.04% | -2.53% | -0.51% |
Max Drawdown (3Y)Largest decline over 3 years | -8.35% | -5.82% | -2.53% |
Max Drawdown (5Y)Largest decline over 5 years | -23.26% | -17.87% | -5.39% |
Max Drawdown (10Y)Largest decline over 10 years | -23.69% | -17.90% | -5.79% |
Current DrawdownCurrent decline from peak | -7.79% | -1.74% | -6.05% |
Average DrawdownAverage peak-to-trough decline | -2.99% | -3.57% | +0.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.12% | 0.90% | +0.22% |
Volatility
WATFX vs. IUSB - Volatility Comparison
Western Asset Core Bond Fund (WATFX) and iShares Core Universal USD Bond ETF (IUSB) have volatilities of 1.20% and 1.17%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| WATFX | IUSB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.20% | 1.17% | +0.03% |
Volatility (6M)Calculated over the trailing 6-month period | 3.03% | 2.80% | +0.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.03% | 3.57% | +0.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.83% | 5.81% | +1.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.54% | 5.05% | +0.49% |
WATFX vs. IUSB - Expense Ratio Comparison
WATFX has a 0.46% expense ratio, which is higher than IUSB's 0.06% expense ratio.
Dividends
WATFX vs. IUSB - Dividend Comparison
WATFX's dividend yield for the trailing twelve months is around 4.02%, less than IUSB's 4.27% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IUSB iShares Core Universal USD Bond ETF | 4.27% | 4.17% | 4.04% | 3.46% | 2.53% | 1.74% | 2.68% | 3.04% | 2.98% | 2.56% | 2.60% | 1.95% |
WATFX Western Asset Core Bond Fund | 4.02% | 4.15% | 4.48% | 3.35% | 2.39% | 2.05% | 3.90% | 3.62% | 2.92% | 2.34% | 2.51% | 2.74% |
Frequently Asked Questions
With a correlation of 0.91, WATFX and IUSB move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
WATFX has higher volatility (1.20%) compared to IUSB (1.17%). In terms of maximum drawdown, WATFX dropped -23.69% vs IUSB's -17.90%.
IUSB currently has the higher Sharpe Ratio (1.11 vs 0.86), 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.
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