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.
Performance
BFFAX vs. LQD - Performance Comparison
Loading graphics...
BFFAX vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BFFAX American Funds The Bond Fund of America Class F-3 | -0.53% | 7.54% | 1.54% | 4.39% | -13.00% | -0.97% | 11.12% | 8.17% | 0.22% | 3.07% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.27% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.03% |
Returns By Period
In the year-to-date period, BFFAX achieves a -0.53% return, which is significantly lower than LQD's -0.27% return.
BFFAX
- 1D
- 0.27%
- 1M
- -1.74%
- YTD
- -0.53%
- 6M
- 0.32%
- 1Y
- 3.72%
- 3Y*
- 3.29%
- 5Y*
- 0.06%
- 10Y*
- —
LQD
- 1D
- 0.11%
- 1M
- -1.63%
- YTD
- -0.27%
- 6M
- -0.34%
- 1Y
- 4.61%
- 3Y*
- 4.30%
- 5Y*
- 0.11%
- 10Y*
- 2.63%
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
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%.
Return for Risk
BFFAX vs. LQD — Risk / Return Rank
BFFAX
LQD
BFFAX vs. LQD - Risk-Adjusted Trends 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.
| BFFAX | LQD | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 0.92 | 0.70 | +0.22 |
Sortino ratioReturn per unit of downside risk | 1.32 | 0.99 | +0.33 |
Omega ratioGain probability vs. loss probability | 1.16 | 1.13 | +0.03 |
Calmar ratioReturn relative to maximum drawdown | 1.56 | 1.48 | +0.08 |
Martin ratioReturn relative to average drawdown | 4.48 | 4.06 | +0.42 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading graphics...
Sharpe Ratios by Period
| BFFAX | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.92 | 0.70 | +0.22 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.01 | 0.01 | 0.00 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.30 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.43 | 0.54 | -0.11 |
Correlation
The correlation between BFFAX and LQD is 0.82, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Dividends
BFFAX vs. LQD - Dividend Comparison
BFFAX's dividend yield for the trailing twelve months is around 4.12%, less than LQD's 4.56% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BFFAX American Funds The Bond Fund of America Class F-3 | 4.12% | 4.48% | 4.67% | 3.28% | 2.46% | 1.98% | 5.38% | 3.80% | 2.72% | 2.01% | 0.00% | 0.00% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.56% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
Drawdowns
BFFAX vs. LQD - Drawdown Comparison
The maximum BFFAX drawdown since its inception was -17.74%, 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.
Loading graphics...
Drawdown Indicators
| BFFAX | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.74% | -24.95% | +7.21% |
Max Drawdown (1Y)Largest decline over 1 year | -2.94% | -3.38% | +0.44% |
Max Drawdown (5Y)Largest decline over 5 years | -17.74% | -24.95% | +7.21% |
Max Drawdown (10Y)Largest decline over 10 years | — | -24.95% | — |
Current DrawdownCurrent decline from peak | -2.32% | -4.42% | +2.10% |
Average DrawdownAverage peak-to-trough decline | -4.74% | -3.99% | -0.75% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.02% | 1.23% | -0.21% |
Volatility
BFFAX vs. LQD - Volatility Comparison
The current volatility for American Funds The Bond Fund of America Class F-3 (BFFAX) is 1.49%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 2.66%. 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.
Loading graphics...
Volatility by Period
| BFFAX | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.49% | 2.66% | -1.17% |
Volatility (6M)Calculated over the trailing 6-month period | 2.49% | 3.76% | -1.27% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.40% | 6.60% | -2.20% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.92% | 8.65% | -2.73% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.00% | 8.67% | -3.67% |