IAAA.L vs. LQD
Compare and contrast key facts about iShares Global AAA-AA Government Bond UCITS (IAAA.L) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).
IAAA.L and LQD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IAAA.L is a passively managed fund by iShares that tracks the performance of the Bloomberg Global Aggregate TR USD. It was launched on Oct 3, 2012. 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 IAAA.L 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.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IAAA.L or LQD.
Key characteristics
| IAAA.L | LQD | |
|---|---|---|
| YTD Return | -2.46% | 2.98% |
| 1Y Return | 6.39% | 12.92% |
| 3Y Return (Ann) | -6.59% | -3.03% |
| 5Y Return (Ann) | -2.72% | 0.61% |
| 10Y Return (Ann) | -1.14% | 2.62% |
| Sharpe Ratio | 0.87 | 1.55 |
| Sortino Ratio | 1.33 | 2.28 |
| Omega Ratio | 1.16 | 1.27 |
| Calmar Ratio | 0.25 | 0.60 |
| Martin Ratio | 1.81 | 5.59 |
| Ulcer Index | 3.98% | 2.11% |
| Daily Std Dev | 8.31% | 7.61% |
| Max Drawdown | -32.79% | -24.95% |
| Current Drawdown | -23.23% | -9.30% |
Correlation
The correlation between IAAA.L and LQD is 0.45, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
IAAA.L vs. LQD - Performance Comparison
In the year-to-date period, IAAA.L achieves a -2.46% return, which is significantly lower than LQD's 2.98% return. Over the past 10 years, IAAA.L has underperformed LQD with an annualized return of -1.14%, while LQD has yielded a comparatively higher 2.62% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IAAA.L vs. LQD - Expense Ratio Comparison
IAAA.L has a 0.20% expense ratio, which is higher than LQD's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
IAAA.L vs. LQD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Global AAA-AA Government Bond UCITS (IAAA.L) 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.
Dividends
IAAA.L vs. LQD - Dividend Comparison
IAAA.L's dividend yield for the trailing twelve months is around 2.31%, less than LQD's 4.34% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IAAA.L iShares Global AAA-AA Government Bond UCITS | 2.31% | 1.52% | 0.75% | 0.48% | 0.56% | 0.88% | 0.94% | 0.77% | 0.88% | 1.08% | 1.38% | 1.02% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.34% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% | 3.39% | 3.83% |
Drawdowns
IAAA.L vs. LQD - Drawdown Comparison
The maximum IAAA.L drawdown since its inception was -32.79%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for IAAA.L and LQD. For additional features, visit the drawdowns tool.
Volatility
IAAA.L vs. LQD - Volatility Comparison
The current volatility for iShares Global AAA-AA Government Bond UCITS (IAAA.L) is 1.94%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 2.50%. This indicates that IAAA.L 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.