FLCO vs. LQD
FLCO (Franklin Liberty Investment Grade Corporate ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both Corporate Bonds funds. FLCO is actively managed, while LQD is passively managed. Over the past 5 years, FLCO returned 0.17%/yr vs -0.04%/yr for LQD. Their correlation of 0.87 suggests significant overlap in exposure. FLCO charges 0.35%/yr vs 0.15%/yr for LQD.
Performance
FLCO vs. LQD - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FLCO achieves a 0.40% return, which is significantly lower than LQD's 0.46% return.
FLCO
- 1D
- -0.19%
- 1M
- 0.57%
- YTD
- 0.40%
- 6M
- 0.31%
- 1Y
- 5.64%
- 3Y*
- 4.97%
- 5Y*
- 0.17%
- 10Y*
- —
LQD
- 1D
- -0.28%
- 1M
- 0.72%
- YTD
- 0.46%
- 6M
- -0.03%
- 1Y
- 6.08%
- 3Y*
- 4.95%
- 5Y*
- -0.04%
- 10Y*
- 2.52%
FLCO vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FLCO Franklin Liberty Investment Grade Corporate ETF | 0.40% | 7.53% | 1.93% | 7.94% | -16.08% | -2.06% | 10.01% | 14.82% | -3.06% | 5.98% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.46% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between FLCO and LQD is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.98 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since Oct 6, 2016 | 0.87 |
The correlation between FLCO and LQD shifts across timeframes, from 0.87 (all time) to 0.98 (3 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
FLCO vs. LQD — Risk / Return Rank
FLCO
LQD
FLCO vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty Investment Grade Corporate ETF (FLCO) 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.
| FLCO | LQD | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.28 | 1.14 | +0.14 |
Sortino ratioReturn per unit of downside risk | 1.89 | 1.67 | +0.22 |
Omega ratioGain probability vs. loss probability | 1.22 | 1.20 | +0.03 |
Calmar ratioReturn relative to maximum drawdown | 2.05 | 1.83 | +0.22 |
Martin ratioReturn relative to average drawdown | 6.16 | 5.23 | +0.94 |
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 charts...
Sharpe Ratios by Period
| FLCO | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.28 | 1.14 | +0.14 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.02 | -0.01 | +0.03 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.29 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.32 | 0.54 | -0.22 |
Drawdowns
FLCO vs. LQD - Drawdown Comparison
The maximum FLCO drawdown since its inception was -22.71%, smaller than the maximum LQD drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for FLCO and LQD.
Loading charts...
Drawdown Indicators
| FLCO | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.71% | -24.95% | +2.24% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -3.34% | +0.58% |
Max Drawdown (3Y)Largest decline over 3 years | -6.59% | -8.43% | +1.84% |
Max Drawdown (5Y)Largest decline over 5 years | -22.48% | -24.95% | +2.47% |
Max Drawdown (10Y)Largest decline over 10 years | — | -24.95% | — |
Current DrawdownCurrent decline from peak | -2.37% | -3.72% | +1.35% |
Average DrawdownAverage peak-to-trough decline | -5.88% | -3.99% | -1.89% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 1.17% | -0.25% |
Volatility
FLCO vs. LQD - Volatility Comparison
The current volatility for Franklin Liberty Investment Grade Corporate ETF (FLCO) is 1.44%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 1.65%. This indicates that FLCO 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 charts...
Volatility by Period
| FLCO | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.44% | 1.65% | -0.21% |
Volatility (6M)Calculated over the trailing 6-month period | 3.24% | 3.90% | -0.66% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.42% | 5.36% | -0.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.15% | 8.65% | -1.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.83% | 8.68% | -1.85% |
FLCO vs. LQD - Expense Ratio Comparison
FLCO has a 0.35% expense ratio, which is higher than LQD's 0.15% expense ratio.
Dividends
FLCO vs. LQD - Dividend Comparison
FLCO's dividend yield for the trailing twelve months is around 4.66%, more than LQD's 4.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FLCO Franklin Liberty Investment Grade Corporate ETF | 4.66% | 4.60% | 4.63% | 3.83% | 3.85% | 2.85% | 3.99% | 3.39% | 3.86% | 3.33% | 0.51% | 0.00% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.57% | 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
With a correlation of 0.98, FLCO and LQD move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
LQD has higher volatility (1.65%) compared to FLCO (1.44%). In terms of maximum drawdown, FLCO dropped -22.71% vs LQD's -24.95%.
On 5-year performance, FLCO leads with 0.17% vs -0.04% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, FLCO has been the lower-risk option at 1.44%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FLCO has performed better with a 0.17% return vs -0.04%. 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 0.35% for FLCO.
FLCO has the higher dividend yield at 4.66%, compared with 4.57% for LQD.
They also come from different issuers: Franklin Templeton and iShares. Their fees differ too: 0.35% for FLCO and 0.15% for LQD.
FLCO currently has the higher Sharpe Ratio (1.28 vs 1.14), 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.
Find the right allocation for FLCO and LQD
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer