BRZU vs. LQD
Compare and contrast key facts about Direxion Daily Brazil Bull 2X Shares (BRZU) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).
BRZU and LQD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. BRZU is a passively managed fund by Direxion that tracks the performance of the MSCI Brazil 25/50 Index. It was launched on Apr 1, 2020. 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. Both BRZU and LQD are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BRZU or LQD.
Key characteristics
| BRZU | LQD | |
|---|---|---|
| YTD Return | -21.35% | -3.94% |
| 1Y Return | 27.65% | 0.59% |
| 3Y Return (Ann) | -2.82% | -3.91% |
| 5Y Return (Ann) | -37.26% | 0.60% |
| 10Y Return (Ann) | -35.52% | 2.16% |
| Sharpe Ratio | 0.73 | 0.02 |
| Daily Std Dev | 45.27% | 9.06% |
| Max Drawdown | -99.71% | -24.95% |
| Current Drawdown | -99.34% | -15.40% |
Correlation
The correlation between BRZU and LQD is 0.13, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
BRZU vs. LQD - Performance Comparison
In the year-to-date period, BRZU achieves a -21.35% return, which is significantly lower than LQD's -3.94% return. Over the past 10 years, BRZU has underperformed LQD with an annualized return of -35.52%, while LQD has yielded a comparatively higher 2.16% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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BRZU vs. LQD - Expense Ratio Comparison
BRZU has a 1.29% expense ratio, which is higher than LQD's 0.15% expense ratio.
Risk-Adjusted Performance
BRZU vs. LQD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Brazil Bull 2X Shares (BRZU) 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
BRZU vs. LQD - Dividend Comparison
BRZU's dividend yield for the trailing twelve months is around 4.38%, which matches LQD's 4.34% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BRZU Direxion Daily Brazil Bull 2X Shares | 4.38% | 3.24% | 4.70% | 6.29% | 0.78% | 0.95% | 1.04% | 0.73% | 0.00% | 0.00% | 0.00% | 0.19% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.34% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% | 3.39% | 3.83% |
Drawdowns
BRZU vs. LQD - Drawdown Comparison
The maximum BRZU drawdown since its inception was -99.71%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for BRZU and LQD. For additional features, visit the drawdowns tool.
Volatility
BRZU vs. LQD - Volatility Comparison
Direxion Daily Brazil Bull 2X Shares (BRZU) has a higher volatility of 13.26% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 2.34%. This indicates that BRZU'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.