WDI vs. LQDW
WDI (Western Asset Diversified Income Fund) and LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) are both funds - WDI is a Multisector Bonds fund managed by Franklin Templeton, while LQDW is a Corporate Bonds fund tracking the CBOE LQD BuyWrite Index. Over the past 3 years, WDI returned 12.93%/yr vs 3.76%/yr for LQDW. At a 0.33 correlation, their price movements are largely independent. WDI charges 1.73%/yr vs 0.34%/yr for LQDW.
Performance
WDI vs. LQDW - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with WDI having a 2.10% return and LQDW slightly lower at 2.05%.
WDI
- 1D
- 0.15%
- 1M
- 0.44%
- YTD
- 2.10%
- 6M
- 2.38%
- 1Y
- 3.35%
- 3Y*
- 12.93%
- 5Y*
- 3.09%
- 10Y*
- —
LQDW
- 1D
- 0.17%
- 1M
- 1.53%
- YTD
- 2.05%
- 6M
- 2.03%
- 1Y
- 6.46%
- 3Y*
- 3.76%
- 5Y*
- —
- 10Y*
- —
WDI vs. LQDW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
WDI Western Asset Diversified Income Fund | 2.10% | 10.64% | 13.88% | 25.11% | -9.86% |
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 2.05% | 9.05% | 2.60% | 3.99% | -6.78% |
Correlation
The correlation between WDI and LQDW is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.26 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (All Time) Calculated using the full available price history since Aug 22, 2022 | 0.33 |
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Return for Risk
WDI vs. LQDW — Risk / Return Rank
WDI
LQDW
WDI vs. LQDW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Western Asset Diversified Income Fund (WDI) and iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). 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 | LQDW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.44 | ||
| Sortino ratioReturn per unit of downside risk | -1.97 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.36 | -0.29 |
| Calmar ratioReturn relative to maximum drawdown | 0.40 | 2.50 | -2.11 |
| Martin ratioReturn relative to average drawdown | 0.98 | 9.30 | -8.32 |
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Drawdowns
WDI vs. LQDW - Drawdown Comparison
The maximum WDI drawdown since its inception was -32.45%, which is greater than LQDW's maximum drawdown of -9.20%. Use the drawdown chart below to compare losses from any high point for WDI and LQDW.
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Drawdown Indicators
| WDI | LQDW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.45% | -9.20% | -23.25% |
Max Drawdown (1Y)Largest decline over 1 year | -8.47% | -2.59% | -5.88% |
Max Drawdown (3Y)Largest decline over 3 years | -14.14% | -6.74% | -7.40% |
Max Drawdown (5Y)Largest decline over 5 years | -32.45% | — | — |
Current DrawdownCurrent decline from peak | -2.99% | 0.00% | -2.99% |
Average DrawdownAverage peak-to-trough decline | -10.33% | -2.31% | -8.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.44% | 0.70% | +2.74% |
Volatility
WDI vs. LQDW - Volatility Comparison
Western Asset Diversified Income Fund (WDI) has a higher volatility of 3.34% compared to iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) at 1.00%. This indicates that WDI's price experiences larger fluctuations and is considered to be riskier than LQDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| WDI | LQDW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.34% | 1.00% | +2.34% |
Volatility (6M)Calculated over the trailing 6-month period | 7.55% | 3.12% | +4.43% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.43% | 3.62% | +5.81% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.93% | 5.47% | +7.46% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.93% | 5.47% | +7.46% |
WDI vs. LQDW - Expense Ratio Comparison
WDI has a 1.73% expense ratio, which is higher than LQDW's 0.34% expense ratio.
Dividends
WDI vs. LQDW - Dividend Comparison
WDI's dividend yield for the trailing twelve months is around 13.35%, more than LQDW's 12.47% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 12.47% | 16.02% | 15.74% | 19.28% | 8.85% | 0.00% |
WDI Western Asset Diversified Income Fund | 13.35% | 13.98% | 12.32% | 11.45% | 11.40% | 3.19% |
Frequently Asked Questions
WDI and LQDW have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
WDI has higher volatility (3.34%) compared to LQDW (1.00%). In terms of maximum drawdown, WDI dropped -32.45% vs LQDW's -9.20%.
LQDW currently has the higher Sharpe Ratio (1.79 vs 0.36), 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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