WDI vs. BLW
WDI (Western Asset Diversified Income Fund) is Multisector Bonds fund managed by Franklin Templeton, while BLW (BlackRock Limited Duration Income Trust) is a stock. Over the past 5 years, WDI returned 3.47%/yr vs 3.36%/yr for BLW. At a 0.44 correlation, their price movements are largely independent.
Performance
WDI vs. BLW - Performance Comparison
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Returns By Period
In the year-to-date period, WDI achieves a 3.94% return, which is significantly higher than BLW's -2.31% return.
WDI
- 1D
- -0.22%
- 1M
- 3.63%
- 6M
- 3.71%
- YTD
- 3.94%
- 1Y
- 3.17%
- 3Y*
- 12.76%
- 5Y*
- 3.47%
- 10Y*
- —
BLW
- 1D
- 0.00%
- 1M
- 4.37%
- 6M
- -2.67%
- YTD
- -2.31%
- 1Y
- -0.56%
- 3Y*
- 9.37%
- 5Y*
- 3.36%
- 10Y*
- 6.52%
WDI vs. BLW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
WDI Western Asset Diversified Income Fund | 3.94% | 10.64% | 13.88% | 25.11% | -23.30% | -5.61% |
BLW BlackRock Limited Duration Income Trust | -2.31% | 7.17% | 11.06% | 17.29% | -15.92% | 3.19% |
Correlation
The correlation between WDI and BLW is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.42 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.42 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.44 |
Correlation (All Time) Calculated using the full available price history since Jun 25, 2021 | 0.44 |
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Return for Risk
WDI vs. BLW — Risk / Return Rank
WDI
BLW
WDI vs. BLW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Western Asset Diversified Income Fund (WDI) and BlackRock Limited Duration Income Trust (BLW). 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.
| WDI | BLW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.40 | ||
| Sortino ratioReturn per unit of downside risk | +0.58 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 0.99 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 0.38 | -0.05 | +0.43 |
| Martin ratioReturn relative to average drawdown | 0.92 | -0.14 | +1.05 |
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Drawdowns
WDI vs. BLW - Drawdown Comparison
The maximum WDI drawdown since its inception was -32.45%, smaller than the maximum BLW drawdown of -44.13%. Use the drawdown chart below to compare losses from any high point for WDI and BLW.
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Drawdown Indicators
| WDI | BLW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.45% | -44.13% | +11.68% |
Max Drawdown (1Y)Largest decline over 1 year | -8.47% | -11.19% | +2.72% |
Max Drawdown (3Y)Largest decline over 3 years | -14.14% | -11.19% | -2.95% |
Max Drawdown (5Y)Largest decline over 5 years | -32.45% | -26.30% | -6.15% |
Max Drawdown (10Y)Largest decline over 10 years | — | -41.85% | — |
Current DrawdownCurrent decline from peak | -1.38% | -4.40% | +3.02% |
Average DrawdownAverage peak-to-trough decline | -10.24% | -6.04% | -4.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.46% | 4.18% | -0.72% |
Volatility
WDI vs. BLW - Volatility Comparison
Western Asset Diversified Income Fund (WDI) has a higher volatility of 2.72% compared to BlackRock Limited Duration Income Trust (BLW) at 1.66%. This indicates that WDI's price experiences larger fluctuations and is considered to be riskier than BLW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| WDI | BLW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.72% | 1.66% | +1.06% |
Volatility (6M)Calculated over the trailing 6-month period | 7.75% | 7.12% | +0.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.58% | 8.06% | +1.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.96% | 12.32% | +0.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.90% | 14.58% | -1.68% |
Dividends
WDI vs. BLW - Dividend Comparison
WDI's dividend yield for the trailing twelve months is around 13.11%, more than BLW's 10.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BLW BlackRock Limited Duration Income Trust | 10.66% | 9.89% | 9.39% | 8.63% | 8.26% | 6.99% | 7.39% | 6.27% | 7.14% | 6.24% | 9.68% | 8.26% |
WDI Western Asset Diversified Income Fund | 13.11% | 13.98% | 12.32% | 11.45% | 11.40% | 3.19% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
WDI and BLW have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
WDI has higher volatility (2.72%) compared to BLW (1.66%). In terms of maximum drawdown, WDI dropped -32.45% vs BLW's -44.13%.
WDI currently has the higher Sharpe Ratio (0.33 vs -0.07), 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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