FXED vs. LQD
FXED (Sound Enhanced Fixed Income ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - FXED is a Diversified Portfolio fund actively managed by Sound Income Strategies, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. FXED is actively managed, while LQD is passively managed. Over the past 5 years, FXED returned 2.31%/yr vs -0.25%/yr for LQD. At a 0.39 correlation, their price movements are largely independent. FXED charges 2.33%/yr vs 0.15%/yr for LQD.
Performance
FXED vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, FXED achieves a -0.29% return, which is significantly lower than LQD's 0.73% return.
FXED
- 1D
- 0.00%
- 1M
- 0.11%
- YTD
- -0.29%
- 6M
- 0.53%
- 1Y
- 4.06%
- 3Y*
- 6.90%
- 5Y*
- 2.31%
- 10Y*
- —
LQD
- 1D
- 0.12%
- 1M
- 0.88%
- YTD
- 0.73%
- 6M
- 0.70%
- 1Y
- 5.10%
- 3Y*
- 4.92%
- 5Y*
- -0.25%
- 10Y*
- 2.48%
FXED vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
FXED Sound Enhanced Fixed Income ETF | -0.29% | 5.77% | 5.18% | 15.09% | -14.68% | 9.75% | -0.17% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.73% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 0.02% |
Correlation
The correlation between FXED and LQD is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.46 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.41 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.39 |
Correlation (All Time) Calculated using the full available price history since Dec 31, 2020 | 0.39 |
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Return for Risk
FXED vs. LQD — Risk / Return Rank
FXED
LQD
FXED vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Sound Enhanced Fixed Income ETF (FXED) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| FXED | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.36 | ||
| Sortino ratioReturn per unit of downside risk | -0.53 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.17 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | 0.76 | 1.53 | -0.77 |
| Martin ratioReturn relative to average drawdown | 2.01 | 4.28 | -2.27 |
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Drawdowns
FXED vs. LQD - Drawdown Comparison
The maximum FXED drawdown since its inception was -19.70%, smaller than the maximum LQD drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for FXED and LQD.
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Drawdown Indicators
| FXED | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.70% | -24.95% | +5.25% |
Max Drawdown (1Y)Largest decline over 1 year | -5.36% | -3.34% | -2.02% |
Max Drawdown (3Y)Largest decline over 3 years | -8.96% | -8.43% | -0.53% |
Max Drawdown (5Y)Largest decline over 5 years | -19.70% | -24.95% | +5.25% |
Max Drawdown (10Y)Largest decline over 10 years | — | -24.95% | — |
Current DrawdownCurrent decline from peak | -2.14% | -3.46% | +1.32% |
Average DrawdownAverage peak-to-trough decline | -4.75% | -3.99% | -0.76% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.02% | 1.19% | +0.83% |
Volatility
FXED vs. LQD - Volatility Comparison
Sound Enhanced Fixed Income ETF (FXED) has a higher volatility of 1.69% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.42%. This indicates that FXED'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
| FXED | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.69% | 1.42% | +0.27% |
Volatility (6M)Calculated over the trailing 6-month period | 5.30% | 3.98% | +1.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.81% | 5.32% | +1.49% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.76% | 8.65% | +0.11% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.56% | 8.69% | -0.13% |
FXED vs. LQD - Expense Ratio Comparison
FXED has a 2.33% expense ratio, which is higher than LQD's 0.15% expense ratio.
Dividends
FXED vs. LQD - Dividend Comparison
FXED's dividend yield for the trailing twelve months is around 7.15%, more than LQD's 4.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXED Sound Enhanced Fixed Income ETF | 7.15% | 6.96% | 6.70% | 5.65% | 5.94% | 4.59% | 0.00% | 0.00% | 0.00% | 0.00% | 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% |
Frequently Asked Questions
FXED and LQD have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FXED has higher volatility (1.69%) compared to LQD (1.42%). In terms of maximum drawdown, FXED dropped -19.70% vs LQD's -24.95%.
On 5-year performance, FXED leads with 2.31% vs -0.25% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, LQD has been the lower-risk option at 1.42%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FXED has performed better with a 2.31% return vs -0.25%. 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 2.33% for FXED.
FXED has the higher dividend yield at 7.15%, compared with 4.56% for LQD.
FXED is categorized as Diversified Portfolio, while LQD is Corporate Bonds. They also come from different issuers: Sound Income Strategies and iShares. Their fees differ too: 2.33% for FXED and 0.15% for LQD.
LQD currently has the higher Sharpe Ratio (0.96 vs 0.60), 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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