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BLW vs. LQDW
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

BLW vs. LQDW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock Limited Duration Income Trust (BLW) and iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, BLW achieves a -5.79% return, which is significantly lower than LQDW's 1.45% return.


BLW

1D
0.00%
1M
-2.10%
YTD
-5.79%
6M
-5.84%
1Y
-2.16%
3Y*
8.97%
5Y*
2.77%
10Y*
6.37%

LQDW

1D
0.20%
1M
0.54%
YTD
1.45%
6M
1.83%
1Y
6.76%
3Y*
3.87%
5Y*
10Y*
*Multi-year figures are annualized to reflect compound growth (CAGR)

BLW vs. LQDW - Yearly Performance Comparison


2026 (YTD)2025202420232022
BLW
BlackRock Limited Duration Income Trust
-5.79%7.17%11.06%17.29%0.31%
LQDW
iShares Investment Grade Corporate Bond Buywrite Strategy ETF
1.45%9.05%2.60%3.99%-6.78%

Correlation

The correlation between BLW and LQDW is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.


Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.25

Correlation (3Y)
Calculated over the trailing 3-year period

0.30

Correlation (All Time)
Calculated using the full available price history since Aug 23, 2022

0.33

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Return for Risk

BLW vs. LQDW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BLW
BLW Risk / Return Rank: 2828
Overall Rank
BLW Sharpe Ratio Rank: 3030
Sharpe Ratio Rank
BLW Sortino Ratio Rank: 2323
Sortino Ratio Rank
BLW Omega Ratio Rank: 2323
Omega Ratio Rank
BLW Calmar Ratio Rank: 3535
Calmar Ratio Rank
BLW Martin Ratio Rank: 3030
Martin Ratio Rank

LQDW
LQDW Risk / Return Rank: 5959
Overall Rank
LQDW Sharpe Ratio Rank: 5858
Sharpe Ratio Rank
LQDW Sortino Ratio Rank: 5858
Sortino Ratio Rank
LQDW Omega Ratio Rank: 6767
Omega Ratio Rank
LQDW Calmar Ratio Rank: 5454
Calmar Ratio Rank
LQDW Martin Ratio Rank: 5757
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BLW vs. LQDW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock Limited Duration Income Trust (BLW) and iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). 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.


BLWLQDWDifference
Sharpe ratioReturn per unit of total volatility

-2.20

Sortino ratioReturn per unit of downside risk

-3.05

Omega ratioGain probability vs. loss probability

0.95

1.39

-0.44

Calmar ratioReturn relative to maximum drawdown

-0.19

2.62

-2.81

Martin ratioReturn relative to average drawdown

-0.62

9.79

-10.41

BLW vs. LQDW - Sharpe Ratio Comparison

The current BLW Sharpe Ratio is -0.27, which is lower than the LQDW Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of BLW and LQDW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.


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Sharpe Ratios by Period


BLWLQDWDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

-0.27

1.92

-2.20

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.23

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.44

Sharpe Ratio (All Time)

Calculated using the full available price history

0.40

0.47

-0.07

Drawdowns

BLW vs. LQDW - Drawdown Comparison

The maximum BLW drawdown since its inception was -44.13%, which is greater than LQDW's maximum drawdown of -9.20%. Use the drawdown chart below to compare losses from any high point for BLW and LQDW.


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Drawdown Indicators


BLWLQDWDifference

Max Drawdown

Largest peak-to-trough decline

-44.13%

-9.20%

-34.93%

Max Drawdown (1Y)

Largest decline over 1 year

-11.19%

-2.59%

-8.60%

Max Drawdown (3Y)

Largest decline over 3 years

-11.19%

-6.74%

-4.45%

Max Drawdown (5Y)

Largest decline over 5 years

-26.30%

Max Drawdown (10Y)

Largest decline over 10 years

-41.85%

Current Drawdown

Current decline from peak

-7.80%

-0.15%

-7.65%

Average Drawdown

Average peak-to-trough decline

-6.04%

-2.35%

-3.69%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.47%

0.69%

+2.78%

Volatility

BLW vs. LQDW - Volatility Comparison

BlackRock Limited Duration Income Trust (BLW) has a higher volatility of 2.33% compared to iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) at 1.39%. This indicates that BLW's price experiences larger fluctuations and is considered to be riskier than LQDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


BLWLQDWDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.33%

1.39%

+0.94%

Volatility (6M)

Calculated over the trailing 6-month period

6.92%

3.02%

+3.90%

Volatility (1Y)

Calculated over the trailing 1-year period

7.93%

3.54%

+4.39%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

12.32%

5.49%

+6.83%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.59%

5.49%

+9.10%

Dividends

BLW vs. LQDW - Dividend Comparison

BLW's dividend yield for the trailing twelve months is around 10.95%, less than LQDW's 12.55% yield.


PositionTTM20252024202320222021202020192018201720162015
BLW
BlackRock Limited Duration Income Trust
10.95%9.89%9.39%8.63%8.26%6.99%7.39%6.27%7.14%6.24%9.68%8.26%
LQDW
iShares Investment Grade Corporate Bond Buywrite Strategy ETF
12.55%16.02%15.74%19.28%8.85%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Frequently Asked Questions


BLW and LQDW have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

BLW has higher volatility (2.33%) compared to LQDW (1.39%). In terms of maximum drawdown, BLW dropped -44.13% vs LQDW's -9.20%.

LQDW currently has the higher Sharpe Ratio (1.92 vs -0.27), 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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