WDI vs. SPYI

Last updated Aug 4, 2026

WDI (Western Asset Diversified Income Fund) and SPYI (NEOS S&P 500 High Income ETF) are both funds - WDI is a Multisector Bonds fund managed by Franklin Templeton, while SPYI is a Derivative Income fund actively managed by Neos. Over the past 3 years, WDI returned 10.92%/yr vs 15.87%/yr for SPYI. Their 0.40 correlation means their historical movements had little consistent relationship. WDI charges 1.73%/yr vs 0.68%/yr for SPYI.

Performance

WDI vs. SPYI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Western Asset Diversified Income Fund (WDI) and NEOS S&P 500 High Income ETF (SPYI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, WDI achieves a 0.85% return, which is significantly lower than SPYI's 9.18% return.

WDI

• 1D: -0.46%
• 1M: -3.68%
• 6M: -0.09%
• YTD: 0.85%
• 1Y: -0.88%
• 3Y*: 10.92%
• 5Y*: 2.57%
• 10Y*: —
• ALL TIME*: 2.79%

SPYI

• 1D: 1.14%
• 1M: 1.76%
• 6M: 7.18%
• YTD: 9.18%
• 1Y: 20.03%
• 3Y*: 15.87%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 14.81%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SPYI NEOS S&P 500 High Income ETF	$155.96M	$140.10M	$149.40M
WDI Western Asset Diversified Income Fund	$2.79M	$2.54M	$2.49M

WDI vs. SPYI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
WDI Western Asset Diversified Income Fund	0.85%	10.64%	13.88%	25.11%	-7.73%
SPYI NEOS S&P 500 High Income ETF	9.18%	16.67%	19.03%	18.09%	-3.96%

Correlation

The correlation between WDI and SPYI is 0.39, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.39
Correlation (3Y) Balances recent behavior with more history.	0.38
Correlation (All Time) Calculated using the full available price history since Aug 30, 2022	0.40

Return for Risk

WDI vs. SPYI — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

WDI

WDI Risk / Return Rank: 3
WDI Sharpe Ratio Rank: 3
WDI Sortino Ratio Rank: 3
WDI Omega Ratio Rank: 3
WDI Calmar Ratio Rank: 3
WDI Martin Ratio Rank: 3

SPYI

SPYI Risk / Return Rank: 80
SPYI Sharpe Ratio Rank: 80
SPYI Sortino Ratio Rank: 79
SPYI Omega Ratio Rank: 82
SPYI Calmar Ratio Rank: 74
SPYI Martin Ratio Rank: 86

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

WDI vs. SPYI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Western Asset Diversified Income Fund (WDI) and NEOS S&P 500 High Income ETF (SPYI). 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	SPYI	Difference
Sharpe ratio: Return per unit of total volatility	-0.09	1.87	-1.96
Sortino ratio: Return per unit of downside risk	-0.06	2.58	-2.64
Omega ratio: Gain probability vs. loss probability	0.99	1.36	-0.36
Calmar ratio: Return relative to maximum drawdown	-0.10	2.61	-2.71
Martin ratio: Return relative to average drawdown	-0.25	12.52	-12.77

WDI vs. SPYI - Sharpe Ratio Comparison

The current WDI Sharpe Ratio is -0.09, which is lower than the SPYI Sharpe Ratio of 1.87. The chart below compares the historical Sharpe Ratios of WDI and SPYI, 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

WDI vs. SPYI - Drawdown Comparison

The maximum WDI drawdown since its inception was -32.45%, which is greater than SPYI's maximum drawdown of -16.47%. Use the drawdown chart below to compare losses from any high point for WDI and SPYI.

Drawdown Indicators

	WDI	SPYI	Difference
Max Drawdown Largest peak-to-trough decline	-32.45%	-16.47%	-15.98%
Max Drawdown (1Y) Largest decline over 1 year	-8.47%	-7.72%	-0.75%
Max Drawdown (3Y) Largest decline over 3 years	-14.14%	-16.47%	+2.33%
Max Drawdown (5Y) Largest decline over 5 years	-32.45%	—	—
Current Drawdown Current decline from peak	-4.31%	0.00%	-4.31%
Average Drawdown Average peak-to-trough decline	-10.16%	-1.79%	-8.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.54%	1.60%	+1.94%

Volatility

WDI vs. SPYI - Volatility Comparison

The current volatility for Western Asset Diversified Income Fund (WDI) is 2.96%, while NEOS S&P 500 High Income ETF (SPYI) has a volatility of 3.40%. This indicates that WDI experiences smaller price fluctuations and is considered to be less risky than SPYI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	WDI	SPYI	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.96%	3.40%	-0.44%
Volatility (6M) Calculated over the trailing 6-month period	7.95%	8.75%	-0.80%
Volatility (1Y) Calculated over the trailing 1-year period	9.75%	10.78%	-1.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.99%	12.97%	+0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.88%	12.97%	-0.09%

WDI vs. SPYI - Expense Ratio Comparison

WDI has a 1.73% expense ratio, which is higher than SPYI's 0.68% expense ratio.

Dividends

WDI vs. SPYI - Dividend Comparison

WDI's dividend yield for the trailing twelve months is around 13.67%, more than SPYI's 11.80% yield.

Position	TTM	2025	2024	2023	2022	2021
SPYI NEOS S&P 500 High Income ETF	11.80%	11.70%	12.04%	12.01%	4.10%	0.00%
WDI Western Asset Diversified Income Fund	13.67%	13.98%	12.32%	11.45%	11.40%	3.19%

Frequently Asked Questions

Can I hold both WDI and SPYI in my portfolio?

WDI and SPYI have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, WDI or SPYI?

SPYI has higher volatility (3.40%) compared to WDI (2.96%). In terms of maximum drawdown, WDI dropped -32.45% vs SPYI's -16.47%.

Which has better risk-adjusted returns?

SPYI currently has the higher Sharpe Ratio (1.87 vs -0.09), 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.