DVY vs. LQD
DVY (iShares Select Dividend ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - DVY is a Large Cap Value Equities fund tracking the Dow Jones U.S. Select Dividend Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, DVY returned 10.10%/yr vs 2.41%/yr for LQD. At a 0.06 correlation, their price movements are largely independent. DVY charges 0.39%/yr vs 0.15%/yr for LQD.
Performance
DVY vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, DVY achieves a 10.24% return, which is significantly higher than LQD's -0.06% return. Over the past 10 years, DVY has outperformed LQD with an annualized return of 10.10%, while LQD has yielded a comparatively lower 2.41% annualized return.
DVY
- 1D
- -0.64%
- 1M
- 1.40%
- YTD
- 10.24%
- 6M
- 11.57%
- 1Y
- 21.73%
- 3Y*
- 15.00%
- 5Y*
- 8.74%
- 10Y*
- 10.10%
LQD
- 1D
- -0.10%
- 1M
- -0.67%
- YTD
- -0.06%
- 6M
- -0.06%
- 1Y
- 5.73%
- 3Y*
- 4.95%
- 5Y*
- -0.28%
- 10Y*
- 2.41%
DVY vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
DVY iShares Select Dividend ETF | 10.24% | 11.60% | 16.24% | 1.12% | 1.80% | 31.70% | -4.91% | 22.62% | -6.36% | 14.82% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.06% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between DVY and LQD is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.33 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.33 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.27 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.17 |
Correlation (All Time) Calculated using the full available price history since Nov 7, 2003 | 0.06 |
Over the past year, DVY and LQD have become more correlated (0.33) than their long-term average of 0.06, meaning their price movements have been converging.
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Return for Risk
DVY vs. LQD — Risk / Return Rank
DVY
LQD
DVY vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Select Dividend ETF (DVY) 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.
| DVY | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.88 | ||
| Sortino ratioReturn per unit of downside risk | +1.30 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.19 | +0.15 |
| Calmar ratioReturn relative to maximum drawdown | 3.17 | 1.72 | +1.44 |
| Martin ratioReturn relative to average drawdown | 11.16 | 4.88 | +6.28 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| DVY | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.97 | 1.08 | +0.88 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.58 | -0.03 | +0.61 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.56 | 0.28 | +0.28 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.48 | 0.54 | -0.06 |
Drawdowns
DVY vs. LQD - Drawdown Comparison
The maximum DVY drawdown since its inception was -62.59%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for DVY and LQD.
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Drawdown Indicators
| DVY | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -62.59% | -24.95% | -37.64% |
Max Drawdown (1Y)Largest decline over 1 year | -6.89% | -3.34% | -3.55% |
Max Drawdown (3Y)Largest decline over 3 years | -16.00% | -8.43% | -7.57% |
Max Drawdown (5Y)Largest decline over 5 years | -17.54% | -24.95% | +7.41% |
Max Drawdown (10Y)Largest decline over 10 years | -41.59% | -24.95% | -16.64% |
Current DrawdownCurrent decline from peak | -1.48% | -4.21% | +2.73% |
Average DrawdownAverage peak-to-trough decline | -8.79% | -3.99% | -4.80% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.95% | 1.18% | +0.77% |
Volatility
DVY vs. LQD - Volatility Comparison
iShares Select Dividend ETF (DVY) has a higher volatility of 2.70% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.62%. This indicates that DVY'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.
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Volatility by Period
| DVY | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.70% | 1.62% | +1.08% |
Volatility (6M)Calculated over the trailing 6-month period | 7.56% | 3.94% | +3.62% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.11% | 5.32% | +5.79% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.21% | 8.65% | +6.56% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.02% | 8.68% | +9.34% |
DVY vs. LQD - Expense Ratio Comparison
DVY has a 0.39% expense ratio, which is higher than LQD's 0.15% expense ratio.
Dividends
DVY vs. LQD - Dividend Comparison
DVY's dividend yield for the trailing twelve months is around 3.40%, less than LQD's 4.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DVY iShares Select Dividend ETF | 3.40% | 3.65% | 3.65% | 3.82% | 3.43% | 3.12% | 3.66% | 3.41% | 3.58% | 3.00% | 3.04% | 3.45% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.59% | 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
DVY and LQD have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DVY has higher volatility (2.70%) compared to LQD (1.62%). In terms of maximum drawdown, DVY dropped -62.59% vs LQD's -24.95%.
On 10-year performance, DVY leads with 10.10% vs 2.41% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, LQD has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, DVY has performed better with a 10.10% return vs 2.41%. 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 0.39% for DVY.
LQD has the higher dividend yield at 4.59%, compared with 3.40% for DVY.
DVY is categorized as Large Cap Value Equities, while LQD is Corporate Bonds. DVY tracks Dow Jones U.S. Select Dividend Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. Their fees differ too: 0.39% for DVY and 0.15% for LQD.
DVY currently has the higher Sharpe Ratio (1.97 vs 1.08), 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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