IBDQ vs. LQD
IBDQ (iShares iBonds Dec 2025 Term Corporate ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both Corporate Bonds funds from iShares - IBDQ tracks the Bloomberg December 2025 Maturity Corporate while LQD tracks the iBoxx $ Liquid Investment Grade Index. Both are passively managed. A 0.58 correlation means they provide meaningful diversification when combined. IBDQ charges 0.10%/yr vs 0.15%/yr for LQD.
Performance
IBDQ vs. LQD - Performance Comparison
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Returns By Period
IBDQ
- 1D
- —
- 1M
- —
- YTD
- —
- 6M
- —
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
LQD
- 1D
- -0.01%
- 1M
- 0.67%
- YTD
- 0.74%
- 6M
- 0.47%
- 1Y
- 6.42%
- 3Y*
- 5.05%
- 5Y*
- 0.15%
- 10Y*
- 2.55%
IBDQ vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IBDQ iShares iBonds Dec 2025 Term Corporate ETF | 0.00% | 4.13% | 5.12% | 5.23% | -5.91% | -1.49% | 8.27% | 13.59% | -2.39% | 6.28% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.74% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between IBDQ and LQD is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.03 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.32 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.52 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Mar 13, 2015 | 0.58 |
Over the past year, the correlation between IBDQ and LQD has dropped to 0.03 - well below their long-term average of 0.58, suggesting their price drivers have been diverging.
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Return for Risk
IBDQ vs. LQD — Risk / Return Rank
IBDQ
LQD
IBDQ vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2025 Term Corporate ETF (IBDQ) 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.
Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.
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Sharpe Ratios by Period
| IBDQ | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | — | 1.20 | — |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.02 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.29 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | — | 0.54 | — |
Drawdowns
IBDQ vs. LQD - Drawdown Comparison
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Drawdown Indicators
| IBDQ | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | — | -24.95% | — |
Max Drawdown (1Y)Largest decline over 1 year | — | -3.34% | — |
Max Drawdown (3Y)Largest decline over 3 years | — | -8.43% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -24.95% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -24.95% | — |
Current DrawdownCurrent decline from peak | — | -3.45% | — |
Average DrawdownAverage peak-to-trough decline | — | -3.99% | — |
Ulcer IndexDepth and duration of drawdowns from previous peaks | — | 1.16% | — |
Volatility
IBDQ vs. LQD - Volatility Comparison
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Volatility by Period
| IBDQ | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | — | 1.66% | — |
Volatility (6M)Calculated over the trailing 6-month period | — | 3.92% | — |
Volatility (1Y)Calculated over the trailing 1-year period | — | 5.36% | — |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | — | 8.65% | — |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | — | 8.68% | — |
IBDQ vs. LQD - Expense Ratio Comparison
IBDQ has a 0.10% 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
IBDQ vs. LQD - Dividend Comparison
IBDQ's dividend yield for the trailing twelve months is around 2.08%, less than LQD's 4.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBDQ iShares iBonds Dec 2025 Term Corporate ETF | 2.08% | 3.77% | 3.81% | 3.27% | 2.23% | 2.07% | 2.51% | 3.21% | 3.52% | 3.28% | 3.39% | 2.64% |
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
IBDQ and LQD have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, IBDQ is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
IBDQ is cheaper with a 0.10% expense ratio, compared with 0.15% for LQD.
LQD has the higher dividend yield at 4.56%, compared with 2.08% for IBDQ.
IBDQ tracks Bloomberg December 2025 Maturity Corporate, while LQD tracks iBoxx $ Liquid Investment Grade Index. Their fees differ too: 0.10% for IBDQ and 0.15% for LQD.
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