HYG vs. LQD
Compare and contrast key facts about iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).
HYG and LQD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. HYG is a passively managed fund by iShares that tracks the performance of the iBoxx $ Liquid High Yield Index. It was launched on Apr 11, 2007. LQD is a passively managed fund by iShares that tracks the performance of the iBoxx $ Liquid Investment Grade Index. It was launched on Jul 26, 2002. Both HYG and LQD are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Performance
HYG vs. LQD - Performance Comparison
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HYG vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | -0.11% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.27% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Returns By Period
In the year-to-date period, HYG achieves a -0.11% return, which is significantly higher than LQD's -0.27% return. Over the past 10 years, HYG has outperformed LQD with an annualized return of 5.16%, while LQD has yielded a comparatively lower 2.63% annualized return.
HYG
- 1D
- 0.24%
- 1M
- -0.65%
- YTD
- -0.11%
- 6M
- 0.93%
- 1Y
- 6.91%
- 3Y*
- 7.99%
- 5Y*
- 3.66%
- 10Y*
- 5.16%
LQD
- 1D
- 0.11%
- 1M
- -1.63%
- YTD
- -0.27%
- 6M
- -0.34%
- 1Y
- 4.61%
- 3Y*
- 4.30%
- 5Y*
- 0.11%
- 10Y*
- 2.63%
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HYG vs. LQD - Expense Ratio Comparison
HYG has a 0.49% expense ratio, which is higher than LQD's 0.15% expense ratio.
Return for Risk
HYG vs. LQD — Risk / Return Rank
HYG
LQD
HYG vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) 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.
| HYG | LQD | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.25 | 0.70 | +0.54 |
Sortino ratioReturn per unit of downside risk | 1.87 | 0.99 | +0.88 |
Omega ratioGain probability vs. loss probability | 1.29 | 1.13 | +0.16 |
Calmar ratioReturn relative to maximum drawdown | 1.82 | 1.48 | +0.34 |
Martin ratioReturn relative to average drawdown | 9.57 | 4.06 | +5.51 |
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
| HYG | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.25 | 0.70 | +0.54 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.49 | 0.01 | +0.48 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.62 | 0.30 | +0.32 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.45 | 0.54 | -0.08 |
Correlation
The correlation between HYG and LQD is 0.29, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Dividends
HYG vs. LQD - Dividend Comparison
HYG's dividend yield for the trailing twelve months is around 5.88%, more than LQD's 4.56% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.88% | 5.71% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% |
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% |
Drawdowns
HYG vs. LQD - Drawdown Comparison
The maximum HYG drawdown since its inception was -34.25%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for HYG and LQD.
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Drawdown Indicators
| HYG | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.25% | -24.95% | -9.30% |
Max Drawdown (1Y)Largest decline over 1 year | -3.93% | -3.38% | -0.55% |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | -24.95% | +9.16% |
Max Drawdown (10Y)Largest decline over 10 years | -22.03% | -24.95% | +2.92% |
Current DrawdownCurrent decline from peak | -1.05% | -4.42% | +3.37% |
Average DrawdownAverage peak-to-trough decline | -3.27% | -3.99% | +0.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.75% | 1.23% | -0.48% |
Volatility
HYG vs. LQD - Volatility Comparison
The current volatility for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is 2.30%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 2.66%. This indicates that HYG 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.
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Volatility by Period
| HYG | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.30% | 2.66% | -0.36% |
Volatility (6M)Calculated over the trailing 6-month period | 2.93% | 3.76% | -0.83% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.57% | 6.60% | -1.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.51% | 8.65% | -1.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.31% | 8.67% | -0.36% |