HDV vs. LQD
HDV (iShares Core High Dividend ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - HDV is a Dividend fund tracking the Morningstar Dividend Yield Focus Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, HDV returned 9.50%/yr vs 2.06%/yr for LQD. Their 0.09 correlation means their historical movements had little consistent relationship. HDV charges 0.08%/yr vs 0.15%/yr for LQD.
Performance
HDV vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, HDV achieves a 20.12% return, which is significantly higher than LQD's -1.41% return. Over the past 10 years, HDV has outperformed LQD with an annualized return of 9.50%, while LQD has yielded a comparatively lower 2.06% annualized return.
HDV
- 1D
- 1.23%
- 1M
- 4.76%
- 6M
- 13.60%
- YTD
- 20.12%
- 1Y
- 24.04%
- 3Y*
- 15.34%
- 5Y*
- 12.15%
- 10Y*
- 9.50%
- ALL TIME*
- 10.85%
LQD
- 1D
- -0.03%
- 1M
- -2.65%
- 6M
- -1.99%
- YTD
- -1.41%
- 1Y
- 1.95%
- 3Y*
- 4.07%
- 5Y*
- -1.00%
- 10Y*
- 2.06%
- ALL TIME*
- 4.35%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $163.75M | $142.23M | $95.79M | |
| $3.09B | $3.13B | $2.99B |
HDV vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HDV iShares Core High Dividend ETF | 20.12% | 11.90% | 14.16% | 1.72% | 7.05% | 19.45% | -6.48% | 20.22% | -3.01% | 13.40% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -1.41% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between HDV and LQD is 0.13, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.13 |
Correlation (3Y) Balances recent behavior with more history. | 0.23 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.23 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.17 |
Correlation (All Time) Calculated using the full available price history since Mar 31, 2011 | 0.09 |
The correlation between HDV and LQD shifts across timeframes, from 0.09 (all time) to 0.23 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
HDV vs. LQD — Risk / Return Rank
HDV
LQD
HDV vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core High Dividend ETF (HDV) 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.
| HDV | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.81 | ||
| Sortino ratioReturn per unit of downside risk | +2.74 | ||
| Omega ratioGain probability vs. loss probability | 1.39 | 1.08 | +0.32 |
| Calmar ratioReturn relative to maximum drawdown | 4.65 | 0.68 | +3.97 |
| Martin ratioReturn relative to average drawdown | 12.72 | 1.76 | +10.96 |
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Drawdowns
HDV vs. LQD - Drawdown Comparison
The maximum HDV drawdown since its inception was -37.04%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for HDV and LQD.
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Drawdown Indicators
| HDV | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -37.04% | -24.95% | -12.09% |
Max Drawdown (1Y)Largest decline over 1 year | -5.18% | -3.34% | -1.84% |
Max Drawdown (3Y)Largest decline over 3 years | -10.49% | -7.87% | -2.62% |
Max Drawdown (5Y)Largest decline over 5 years | -15.42% | -24.95% | +9.53% |
Max Drawdown (10Y)Largest decline over 10 years | -37.04% | -24.95% | -12.09% |
Current DrawdownCurrent decline from peak | 0.00% | -5.51% | +5.51% |
Average DrawdownAverage peak-to-trough decline | -3.07% | -3.99% | +0.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.89% | 1.30% | +0.59% |
Volatility
HDV vs. LQD - Volatility Comparison
iShares Core High Dividend ETF (HDV) has a higher volatility of 4.88% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.28%. This indicates that HDV'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
| HDV | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.88% | 1.28% | +3.60% |
Volatility (6M)Calculated over the trailing 6-month period | 8.55% | 4.02% | +4.53% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.74% | 5.29% | +5.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.93% | 8.64% | +4.29% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.77% | 8.69% | +7.08% |
HDV vs. LQD - Expense Ratio Comparison
HDV has a 0.08% expense ratio, which is lower than LQD's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
HDV vs. LQD - Dividend Comparison
HDV's dividend yield for the trailing twelve months is around 3.07%, less than LQD's 4.65% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HDV iShares Core High Dividend ETF | 3.07% | 3.22% | 3.67% | 3.82% | 3.56% | 3.47% | 4.07% | 3.27% | 3.67% | 3.27% | 3.28% | 3.92% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.65% | 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
HDV and LQD have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HDV has higher volatility (4.88%) compared to LQD (1.28%). In terms of maximum drawdown, HDV dropped -37.04% vs LQD's -24.95%.
On 10-year performance, HDV leads with 9.50% vs 2.06% for LQD. On fees, HDV is cheaper at 0.08% per year. On volatility, LQD has been the lower-risk option at 1.28%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HDV has performed better with a 9.50% return vs 2.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
HDV is cheaper with a 0.08% expense ratio, compared with 0.15% for LQD.
LQD has the higher dividend yield at 4.65%, compared with 3.07% for HDV.
HDV is categorized as Dividend, while LQD is Corporate Bonds. HDV tracks Morningstar Dividend Yield Focus Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. Their fees differ too: 0.08% for HDV and 0.15% for LQD.
HDV currently has the higher Sharpe Ratio (2.24 vs 0.43), 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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