ACWI vs. LQD
ACWI (iShares MSCI ACWI ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - ACWI is a Global Equities fund tracking the MSCI All Country World Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, ACWI returned 13.02%/yr vs 2.54%/yr for LQD. At a 0.12 correlation, their price movements are largely independent. ACWI charges 0.32%/yr vs 0.15%/yr for LQD.
Performance
ACWI vs. LQD - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, ACWI achieves a 10.59% return, which is significantly higher than LQD's 0.82% return. Over the past 10 years, ACWI has outperformed LQD with an annualized return of 13.02%, while LQD has yielded a comparatively lower 2.54% annualized return.
ACWI
- 1D
- 0.41%
- 1M
- -0.11%
- YTD
- 10.59%
- 6M
- 11.34%
- 1Y
- 26.86%
- 3Y*
- 19.78%
- 5Y*
- 10.88%
- 10Y*
- 13.02%
LQD
- 1D
- -0.06%
- 1M
- 0.80%
- YTD
- 0.82%
- 6M
- 1.24%
- 1Y
- 5.80%
- 3Y*
- 5.30%
- 5Y*
- -0.21%
- 10Y*
- 2.54%
ACWI vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ACWI iShares MSCI ACWI ETF | 10.59% | 22.41% | 17.45% | 22.27% | -18.39% | 18.66% | 16.34% | 26.59% | -9.19% | 24.33% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.82% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between ACWI and LQD is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.47 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.38 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.35 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.26 |
Correlation (All Time) Calculated using the full available price history since Mar 28, 2008 | 0.12 |
Over the past year, ACWI and LQD have become more correlated (0.47) than their long-term average of 0.12, meaning their price movements have been converging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
ACWI vs. LQD — Risk / Return Rank
ACWI
LQD
ACWI vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI ACWI ETF (ACWI) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD). 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.
| ACWI | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.93 | ||
| Sortino ratioReturn per unit of downside risk | +1.19 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.17 | +0.18 |
| Calmar ratioReturn relative to maximum drawdown | 2.62 | 1.55 | +1.07 |
| Martin ratioReturn relative to average drawdown | 11.46 | 4.37 | +7.09 |
Loading charts...
Drawdowns
ACWI vs. LQD - Drawdown Comparison
The maximum ACWI drawdown since its inception was -56.00%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for ACWI and LQD.
Loading charts...
Drawdown Indicators
| ACWI | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -56.00% | -24.95% | -31.05% |
Max Drawdown (1Y)Largest decline over 1 year | -9.73% | -3.34% | -6.39% |
Max Drawdown (3Y)Largest decline over 3 years | -16.55% | -8.43% | -8.12% |
Max Drawdown (5Y)Largest decline over 5 years | -26.42% | -24.95% | -1.47% |
Max Drawdown (10Y)Largest decline over 10 years | -33.53% | -24.95% | -8.58% |
Current DrawdownCurrent decline from peak | -2.19% | -3.37% | +1.18% |
Average DrawdownAverage peak-to-trough decline | -8.60% | -3.99% | -4.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.22% | 1.19% | +1.03% |
Volatility
ACWI vs. LQD - Volatility Comparison
iShares MSCI ACWI ETF (ACWI) has a higher volatility of 5.17% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.78%. This indicates that ACWI's price experiences larger fluctuations and is considered to be riskier than LQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| ACWI | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.17% | 1.78% | +3.39% |
Volatility (6M)Calculated over the trailing 6-month period | 11.09% | 4.02% | +7.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.42% | 5.37% | +8.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.15% | 8.65% | +7.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.14% | 8.69% | +8.45% |
ACWI vs. LQD - Expense Ratio Comparison
ACWI has a 0.32% expense ratio, which is higher than LQD's 0.15% expense ratio.
Dividends
ACWI vs. LQD - Dividend Comparison
ACWI's dividend yield for the trailing twelve months is around 1.40%, less than LQD's 4.55% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ACWI iShares MSCI ACWI ETF | 1.40% | 1.55% | 1.70% | 1.88% | 1.79% | 1.71% | 1.43% | 2.33% | 2.18% | 1.94% | 2.19% | 2.56% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.55% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
Frequently Asked Questions
ACWI and LQD have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ACWI has higher volatility (5.17%) compared to LQD (1.78%). In terms of maximum drawdown, ACWI dropped -56.00% vs LQD's -24.95%.
On 10-year performance, ACWI leads with 13.02% vs 2.54% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, LQD has been the lower-risk option at 1.78%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, ACWI has performed better with a 13.02% return vs 2.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LQD is cheaper with a 0.15% expense ratio, compared with 0.32% for ACWI.
LQD has the higher dividend yield at 4.55%, compared with 1.40% for ACWI.
ACWI is categorized as Global Equities, while LQD is Corporate Bonds. ACWI tracks MSCI All Country World Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. Their fees differ too: 0.32% for ACWI and 0.15% for LQD.
ACWI currently has the higher Sharpe Ratio (1.90 vs 0.97), 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.
Find the right allocation for ACWI and LQD
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer