FXI vs. LQD
FXI (iShares China Large-Cap ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - FXI is a China Equities fund tracking the FTSE China 50 Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, FXI returned 3.13%/yr vs 2.54%/yr for LQD. At a 0.03 correlation, their price movements are largely independent. FXI charges 0.74%/yr vs 0.15%/yr for LQD.
Performance
FXI vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, FXI achieves a -7.83% return, which is significantly lower than LQD's 0.82% return. Over the past 10 years, FXI has outperformed LQD with an annualized return of 3.13%, while LQD has yielded a comparatively lower 2.54% annualized return.
FXI
- 1D
- 1.09%
- 1M
- -7.76%
- YTD
- -7.83%
- 6M
- -8.72%
- 1Y
- -2.91%
- 3Y*
- 10.41%
- 5Y*
- -3.08%
- 10Y*
- 3.13%
LQD
- 1D
- -0.06%
- 1M
- 0.74%
- YTD
- 0.82%
- 6M
- 1.24%
- 1Y
- 5.16%
- 3Y*
- 5.30%
- 5Y*
- -0.21%
- 10Y*
- 2.54%
FXI vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FXI iShares China Large-Cap ETF | -7.83% | 28.95% | 28.98% | -12.42% | -20.66% | -20.06% | 8.92% | 14.90% | -13.28% | 36.26% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.82% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between FXI and LQD is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.14 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.12 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2004 | 0.03 |
Over the past year, FXI and LQD have become more correlated (0.24) than their long-term average of 0.03, meaning their price movements have been converging.
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Return for Risk
FXI vs. LQD — Risk / Return Rank
FXI
LQD
FXI vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares China Large-Cap ETF (FXI) 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.
| FXI | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.12 | ||
| Sortino ratioReturn per unit of downside risk | -1.50 | ||
| Omega ratioGain probability vs. loss probability | 0.99 | 1.17 | -0.18 |
| Calmar ratioReturn relative to maximum drawdown | -0.18 | 1.55 | -1.74 |
| Martin ratioReturn relative to average drawdown | -0.38 | 4.37 | -4.75 |
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Drawdowns
FXI vs. LQD - Drawdown Comparison
The maximum FXI drawdown since its inception was -72.68%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for FXI and LQD.
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Drawdown Indicators
| FXI | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -72.68% | -24.95% | -47.73% |
Max Drawdown (1Y)Largest decline over 1 year | -16.03% | -3.34% | -12.69% |
Max Drawdown (3Y)Largest decline over 3 years | -28.72% | -8.43% | -20.29% |
Max Drawdown (5Y)Largest decline over 5 years | -54.94% | -24.95% | -29.99% |
Max Drawdown (10Y)Largest decline over 10 years | -60.81% | -24.95% | -35.86% |
Current DrawdownCurrent decline from peak | -27.42% | -3.37% | -24.05% |
Average DrawdownAverage peak-to-trough decline | -31.21% | -3.99% | -27.22% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.66% | 1.19% | +6.47% |
Volatility
FXI vs. LQD - Volatility Comparison
iShares China Large-Cap ETF (FXI) has a higher volatility of 6.22% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.78%. This indicates that FXI'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
| FXI | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.22% | 1.78% | +4.44% |
Volatility (6M)Calculated over the trailing 6-month period | 14.30% | 4.02% | +10.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.90% | 5.37% | +14.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 31.67% | 8.65% | +23.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.64% | 8.69% | +18.95% |
FXI vs. LQD - Expense Ratio Comparison
FXI has a 0.74% expense ratio, which is higher than LQD's 0.15% expense ratio.
Dividends
FXI vs. LQD - Dividend Comparison
FXI's dividend yield for the trailing twelve months is around 2.62%, less than LQD's 4.55% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXI iShares China Large-Cap ETF | 2.62% | 2.42% | 1.76% | 3.17% | 2.61% | 1.60% | 2.19% | 2.74% | 2.69% | 2.31% | 2.69% | 2.90% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.55% | 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
FXI and LQD have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FXI has higher volatility (6.22%) compared to LQD (1.78%). In terms of maximum drawdown, FXI dropped -72.68% vs LQD's -24.95%.
On 10-year performance, FXI leads with 3.13% vs 2.54% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, LQD has been the lower-risk option at 1.78%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FXI has performed better with a 3.13% return vs 2.54%. 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 0.74% for FXI.
LQD has the higher dividend yield at 4.55%, compared with 2.62% for FXI.
FXI is categorized as China Equities, while LQD is Corporate Bonds. FXI tracks FTSE China 50 Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. Their fees differ too: 0.74% for FXI and 0.15% for LQD.
LQD currently has the higher Sharpe Ratio (0.97 vs -0.15), 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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