WAVLX vs. BTSIX

Last updated Jul 14, 2026

WAVLX (Wavelength Interest Rate Neutral Fund) and BTSIX (BTS Managed Income Fund) are both Nontraditional Bonds funds. Over the past 5 years, WAVLX returned 2.50%/yr vs 0.53%/yr for BTSIX. Their correlation of 0.81 suggests significant overlap in exposure. WAVLX charges 0.99%/yr vs 1.50%/yr for BTSIX.

Performance

WAVLX vs. BTSIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Wavelength Interest Rate Neutral Fund (WAVLX) and BTS Managed Income Fund (BTSIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, WAVLX achieves a 2.57% return, which is significantly higher than BTSIX's 2.14% return.

WAVLX

• 1D: 0.00%
• 1M: -0.25%
• 6M: 1.76%
• YTD: 2.57%
• 1Y: 7.86%
• 3Y*: 7.49%
• 5Y*: 2.50%
• 10Y*: 3.92%

BTSIX

• 1D: 0.00%
• 1M: 0.31%
• 6M: 1.29%
• YTD: 2.14%
• 1Y: 4.95%
• 3Y*: 5.16%
• 5Y*: 0.53%
• 10Y*: —

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

WAVLX vs. BTSIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
WAVLX Wavelength Interest Rate Neutral Fund	2.57%	9.86%	5.21%	7.02%	-11.34%	1.72%	8.29%	13.07%
BTSIX BTS Managed Income Fund	2.14%	5.68%	4.37%	5.65%	-12.34%	-1.14%	8.63%	4.06%

Correlation

The correlation between WAVLX and BTSIX is 0.78, 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	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (All Time) Calculated using the full available price history since Jan 2, 2019	0.81

The correlation between WAVLX and BTSIX has been stable across timeframes, ranging from 0.78 to 0.84 - a consistent structural relationship.

Return for Risk

WAVLX vs. BTSIX — Risk / Return Rank

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

WAVLX

WAVLX Risk / Return Rank: 67
WAVLX Sharpe Ratio Rank: 63
WAVLX Sortino Ratio Rank: 65
WAVLX Omega Ratio Rank: 66
WAVLX Calmar Ratio Rank: 67
WAVLX Martin Ratio Rank: 71

BTSIX

BTSIX Risk / Return Rank: 41
BTSIX Sharpe Ratio Rank: 39
BTSIX Sortino Ratio Rank: 41
BTSIX Omega Ratio Rank: 40
BTSIX Calmar Ratio Rank: 39
BTSIX Martin Ratio Rank: 44

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.

WAVLX vs. BTSIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Wavelength Interest Rate Neutral Fund (WAVLX) and BTS Managed Income Fund (BTSIX). 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.

	WAVLX	BTSIX	Difference
Sharpe ratio: Return per unit of total volatility	1.76	1.39	+0.37
Sortino ratio: Return per unit of downside risk	2.54	2.06	+0.48
Omega ratio: Gain probability vs. loss probability	1.34	1.26	+0.08
Calmar ratio: Return relative to maximum drawdown	2.50	1.89	+0.61
Martin ratio: Return relative to average drawdown	10.31	7.39	+2.92

WAVLX vs. BTSIX - Sharpe Ratio Comparison

The current WAVLX Sharpe Ratio is 1.76, which is comparable to the BTSIX Sharpe Ratio of 1.39. The chart below compares the historical Sharpe Ratios of WAVLX and BTSIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

WAVLX vs. BTSIX - Drawdown Comparison

The maximum WAVLX drawdown since its inception was -14.39%, smaller than the maximum BTSIX drawdown of -16.28%. Use the drawdown chart below to compare losses from any high point for WAVLX and BTSIX.

Drawdown Indicators

	WAVLX	BTSIX	Difference
Max Drawdown Largest peak-to-trough decline	-14.39%	-16.28%	+1.89%
Max Drawdown (1Y) Largest decline over 1 year	-3.03%	-2.57%	-0.46%
Max Drawdown (3Y) Largest decline over 3 years	-5.33%	-6.22%	+0.89%
Max Drawdown (5Y) Largest decline over 5 years	-14.39%	-16.28%	+1.89%
Max Drawdown (10Y) Largest decline over 10 years	-14.39%	—	—
Current Drawdown Current decline from peak	-0.83%	-0.21%	-0.62%
Average Drawdown Average peak-to-trough decline	-2.96%	-4.58%	+1.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.73%	0.66%	+0.07%

Volatility

WAVLX vs. BTSIX - Volatility Comparison

Wavelength Interest Rate Neutral Fund (WAVLX) has a higher volatility of 1.31% compared to BTS Managed Income Fund (BTSIX) at 0.96%. This indicates that WAVLX's price experiences larger fluctuations and is considered to be riskier than BTSIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	WAVLX	BTSIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.31%	0.96%	+0.35%
Volatility (6M) Calculated over the trailing 6-month period	3.40%	2.67%	+0.73%
Volatility (1Y) Calculated over the trailing 1-year period	4.31%	3.50%	+0.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.61%	5.25%	+0.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.30%	5.23%	+0.07%

WAVLX vs. BTSIX - Expense Ratio Comparison

WAVLX has a 0.99% expense ratio, which is lower than BTSIX's 1.50% expense ratio.

Dividends

WAVLX vs. BTSIX - Dividend Comparison

WAVLX's dividend yield for the trailing twelve months is around 3.86%, less than BTSIX's 5.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BTSIX BTS Managed Income Fund	5.38%	5.62%	2.59%	2.51%	2.59%	1.37%	1.34%	2.01%	0.00%	0.00%	0.00%	0.00%
WAVLX Wavelength Interest Rate Neutral Fund	3.86%	3.67%	4.41%	4.83%	3.63%	2.83%	2.21%	4.96%	2.65%	2.09%	2.13%	2.18%

Frequently Asked Questions

Can I hold both WAVLX and BTSIX in my portfolio?

WAVLX and BTSIX have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, WAVLX or BTSIX?

WAVLX has higher volatility (1.31%) compared to BTSIX (0.96%). In terms of maximum drawdown, WAVLX dropped -14.39% vs BTSIX's -16.28%.

Which has better risk-adjusted returns?

WAVLX currently has the higher Sharpe Ratio (1.76 vs 1.39), 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.