BFFAX vs. LQD
Compare and contrast key facts about American Funds The Bond Fund of America Class F-3 (BFFAX) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).
BFFAX is managed by American Funds. It was launched on May 28, 1974. LQD is a passively managed fund by iShares that tracks the performance of the iBoxx $ Liquid Investment Grade Index. It was launched on Jul 26, 2002.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BFFAX or LQD.
Correlation
The correlation between BFFAX and LQD is -0.02. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
BFFAX vs. LQD - Performance Comparison
Key characteristics
BFFAX:
1.37
LQD:
0.93
BFFAX:
2.03
LQD:
1.34
BFFAX:
1.24
LQD:
1.16
BFFAX:
0.49
LQD:
0.45
BFFAX:
3.51
LQD:
2.63
BFFAX:
2.09%
LQD:
2.67%
BFFAX:
5.35%
LQD:
7.55%
BFFAX:
-19.76%
LQD:
-24.95%
BFFAX:
-8.07%
LQD:
-9.20%
Returns By Period
In the year-to-date period, BFFAX achieves a 2.50% return, which is significantly higher than LQD's 2.22% return.
BFFAX
2.50%
0.21%
2.14%
7.71%
-0.75%
N/A
LQD
2.22%
-0.07%
0.97%
7.34%
-0.18%
2.37%
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BFFAX vs. LQD - Expense Ratio Comparison
BFFAX has a 0.20% expense ratio, which is higher than LQD's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
BFFAX vs. LQD — Risk-Adjusted Performance Rank
BFFAX
LQD
BFFAX vs. LQD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds The Bond Fund of America Class F-3 (BFFAX) 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.
Dividends
BFFAX vs. LQD - Dividend Comparison
BFFAX's dividend yield for the trailing twelve months is around 4.62%, more than LQD's 4.42% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BFFAX American Funds The Bond Fund of America Class F-3 | 4.62% | 4.66% | 3.94% | 3.09% | 1.79% | 5.38% | 2.66% | 2.72% | 2.01% | 0.00% | 0.00% | 0.00% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.42% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% | 3.39% |
Drawdowns
BFFAX vs. LQD - Drawdown Comparison
The maximum BFFAX drawdown since its inception was -19.76%, smaller than the maximum LQD drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for BFFAX and LQD. For additional features, visit the drawdowns tool.
Volatility
BFFAX vs. LQD - Volatility Comparison
The current volatility for American Funds The Bond Fund of America Class F-3 (BFFAX) is 2.23%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 4.02%. This indicates that BFFAX experiences smaller price fluctuations and is considered to be less risky than LQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.