WDI vs. MSD
WDI (Western Asset Diversified Income Fund) is Multisector Bonds fund managed by Franklin Templeton, while MSD (Morgan Stanley Emerging Markets Debt Fund, Inc.) is a stock. Over the past 5 years, WDI returned 2.79%/yr vs 3.89%/yr for MSD. Their 0.37 correlation means their historical movements had little consistent relationship.
Performance
WDI vs. MSD - Performance Comparison
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Returns By Period
In the year-to-date period, WDI achieves a 1.31% return, which is significantly lower than MSD's 2.01% return.
WDI
- 1D
- 0.23%
- 1M
- -3.24%
- 6M
- 0.65%
- YTD
- 1.31%
- 1Y
- -0.43%
- 3Y*
- 11.36%
- 5Y*
- 2.79%
- 10Y*
- —
- ALL TIME*
- 2.89%
MSD
- 1D
- -0.41%
- 1M
- -0.55%
- 6M
- -1.72%
- YTD
- 2.01%
- 1Y
- 5.66%
- 3Y*
- 15.08%
- 5Y*
- 3.89%
- 10Y*
- 4.84%
- ALL TIME*
- 7.16%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $462.06K | $515.29K | $664.52K | |
| $2.64M | $2.38M | $2.43M |
WDI vs. MSD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
WDI Western Asset Diversified Income Fund | 1.31% | 10.64% | 13.88% | 25.11% | -23.30% | -5.61% |
MSD Morgan Stanley Emerging Markets Debt Fund, Inc. | 2.01% | 5.58% | 24.92% | 19.14% | -22.10% | -1.12% |
Correlation
The correlation between WDI and MSD is 0.44, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.44 |
Correlation (3Y) Balances recent behavior with more history. | 0.39 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.38 |
Correlation (All Time) Calculated using the full available price history since Jun 25, 2021 | 0.37 |
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Return for Risk
WDI vs. MSD — Risk / Return Rank
WDI
MSD
WDI vs. MSD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Western Asset Diversified Income Fund (WDI) and Morgan Stanley Emerging Markets Debt Fund, Inc. (MSD). 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 | MSD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.60 | ||
| Sortino ratioReturn per unit of downside risk | -0.80 | ||
| Omega ratioGain probability vs. loss probability | 1.00 | 1.11 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | -0.03 | 0.54 | -0.57 |
| Martin ratioReturn relative to average drawdown | -0.08 | 1.48 | -1.56 |
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Drawdowns
WDI vs. MSD - Drawdown Comparison
The maximum WDI drawdown since its inception was -32.45%, smaller than the maximum MSD drawdown of -58.51%. Use the drawdown chart below to compare losses from any high point for WDI and MSD.
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Drawdown Indicators
| WDI | MSD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.45% | -58.51% | +26.06% |
Max Drawdown (1Y)Largest decline over 1 year | -8.47% | -10.59% | +2.12% |
Max Drawdown (3Y)Largest decline over 3 years | -14.14% | -12.84% | -1.30% |
Max Drawdown (5Y)Largest decline over 5 years | -32.45% | -33.89% | +1.44% |
Max Drawdown (10Y)Largest decline over 10 years | — | -37.50% | — |
Current DrawdownCurrent decline from peak | -3.87% | -4.94% | +1.07% |
Average DrawdownAverage peak-to-trough decline | -10.16% | -11.27% | +1.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.53% | 3.84% | -0.31% |
Volatility
WDI vs. MSD - Volatility Comparison
Western Asset Diversified Income Fund (WDI) has a higher volatility of 2.97% compared to Morgan Stanley Emerging Markets Debt Fund, Inc. (MSD) at 2.45%. This indicates that WDI's price experiences larger fluctuations and is considered to be riskier than MSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| WDI | MSD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.97% | 2.45% | +0.52% |
Volatility (6M)Calculated over the trailing 6-month period | 7.97% | 8.35% | -0.38% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.72% | 10.03% | -0.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.00% | 14.06% | -1.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.88% | 14.72% | -1.84% |
Dividends
WDI vs. MSD - Dividend Comparison
WDI's dividend yield for the trailing twelve months is around 13.60%, more than MSD's 8.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MSD Morgan Stanley Emerging Markets Debt Fund, Inc. | 8.43% | 9.88% | 11.88% | 10.90% | 7.34% | 4.99% | 4.67% | 5.37% | 6.56% | 5.81% | 6.87% | 7.03% |
WDI Western Asset Diversified Income Fund | 13.60% | 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 MSD have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
WDI has higher volatility (2.97%) compared to MSD (2.45%). In terms of maximum drawdown, WDI dropped -32.45% vs MSD's -58.51%.
MSD currently has the higher Sharpe Ratio (0.57 vs -0.03), 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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