IBDY vs. LQDW

Last updated Jul 12, 2026

IBDY (iShares iBonds Dec 2033 Term Corporate ETF) and LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) are both Corporate Bonds funds from iShares - IBDY tracks the Bloomberg December 2033 Maturity Corporate Index while LQDW tracks the CBOE LQD BuyWrite Index. Both are passively managed. Over the past 3 years, IBDY returned 5.91%/yr vs 3.48%/yr for LQDW. A 0.77 correlation means they provide meaningful diversification when combined. IBDY charges 0.10%/yr vs 0.34%/yr for LQDW.

Performance

IBDY vs. LQDW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2033 Term Corporate ETF (IBDY) and iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IBDY achieves a -0.03% return, which is significantly lower than LQDW's 1.20% return.

IBDY

• 1D: -0.08%
• 1M: -0.34%
• 6M: -0.11%
• YTD: -0.03%
• 1Y: 4.60%
• 3Y*: 5.91%
• 5Y*: —
• 10Y*: —

LQDW

• 1D: -0.37%
• 1M: -0.40%
• 6M: 0.83%
• YTD: 1.20%
• 1Y: 5.19%
• 3Y*: 3.48%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

IBDY vs. LQDW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
IBDY iShares iBonds Dec 2033 Term Corporate ETF	-0.03%	9.41%	2.02%	5.10%
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	1.20%	9.05%	2.60%	-2.05%

Correlation

The correlation between IBDY and LQDW is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (All Time) Calculated using the full available price history since Jun 23, 2023	0.77

The correlation between IBDY and LQDW has been stable across timeframes, ranging from 0.77 to 0.81 - a consistent structural relationship.

Return for Risk

IBDY vs. LQDW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IBDY

IBDY Risk / Return Rank: 34
IBDY Sharpe Ratio Rank: 34
IBDY Sortino Ratio Rank: 34
IBDY Omega Ratio Rank: 32
IBDY Calmar Ratio Rank: 36
IBDY Martin Ratio Rank: 36

LQDW

LQDW Risk / Return Rank: 50
LQDW Sharpe Ratio Rank: 50
LQDW Sortino Ratio Rank: 47
LQDW Omega Ratio Rank: 53
LQDW Calmar Ratio Rank: 48
LQDW Martin Ratio Rank: 53

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IBDY vs. LQDW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2033 Term Corporate ETF (IBDY) and iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). 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.

	IBDY	LQDW	Difference
Sharpe ratio: Return per unit of total volatility	1.01	1.37	-0.36
Sortino ratio: Return per unit of downside risk	1.50	1.93	-0.43
Omega ratio: Gain probability vs. loss probability	1.18	1.27	-0.09
Calmar ratio: Return relative to maximum drawdown	1.47	1.95	-0.48
Martin ratio: Return relative to average drawdown	4.35	7.14	-2.79

IBDY vs. LQDW - Sharpe Ratio Comparison

The current IBDY Sharpe Ratio is 1.01, which is comparable to the LQDW Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of IBDY and LQDW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IBDY vs. LQDW - Drawdown Comparison

The maximum IBDY drawdown since its inception was -7.53%, smaller than the maximum LQDW drawdown of -9.20%. Use the drawdown chart below to compare losses from any high point for IBDY and LQDW.

Drawdown Indicators

	IBDY	LQDW	Difference
Max Drawdown Largest peak-to-trough decline	-7.53%	-9.20%	+1.67%
Max Drawdown (1Y) Largest decline over 1 year	-2.84%	-2.59%	-0.25%
Max Drawdown (3Y) Largest decline over 3 years	-7.44%	-6.74%	-0.70%
Current Drawdown Current decline from peak	-1.56%	-1.12%	-0.44%
Average Drawdown Average peak-to-trough decline	-1.56%	-2.29%	+0.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.71%	+0.25%

Volatility

IBDY vs. LQDW - Volatility Comparison

iShares iBonds Dec 2033 Term Corporate ETF (IBDY) has a higher volatility of 1.23% compared to iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) at 0.98%. This indicates that IBDY's price experiences larger fluctuations and is considered to be riskier than LQDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBDY	LQDW	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.23%	0.98%	+0.25%
Volatility (6M) Calculated over the trailing 6-month period	3.14%	3.19%	-0.05%
Volatility (1Y) Calculated over the trailing 1-year period	4.12%	3.67%	+0.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.30%	5.45%	+0.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.30%	5.45%	+0.85%

IBDY vs. LQDW - Expense Ratio Comparison

IBDY has a 0.10% expense ratio, which is lower than LQDW's 0.34% expense ratio.

Dividends

IBDY vs. LQDW - Dividend Comparison

IBDY's dividend yield for the trailing twelve months is around 4.92%, less than LQDW's 12.24% yield.

Position	TTM	2025	2024	2023	2022
IBDY iShares iBonds Dec 2033 Term Corporate ETF	4.92%	4.87%	5.02%	2.20%	0.00%
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	12.24%	16.02%	15.74%	19.28%	8.85%

Frequently Asked Questions

Can I hold both IBDY and LQDW in my portfolio?

IBDY and LQDW have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IBDY or LQDW?

IBDY has higher volatility (1.23%) compared to LQDW (0.98%). In terms of maximum drawdown, IBDY dropped -7.53% vs LQDW's -9.20%.

Which ETF is better, IBDY or LQDW?

On 3-year performance, IBDY leads with 5.91% vs 3.48% for LQDW. On fees, IBDY is cheaper at 0.10% per year. On volatility, LQDW has been the lower-risk option at 0.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBDY or LQDW?

Over the 3-year period, IBDY has performed better with a 5.91% return vs 3.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBDY or LQDW?

IBDY is cheaper with a 0.10% expense ratio, compared with 0.34% for LQDW.

Which ETF pays a higher dividend yield, IBDY or LQDW?

LQDW has the higher dividend yield at 12.24%, compared with 4.92% for IBDY.

What is the main difference between IBDY and LQDW?

IBDY tracks Bloomberg December 2033 Maturity Corporate Index, while LQDW tracks CBOE LQD BuyWrite Index. Their fees differ too: 0.10% for IBDY and 0.34% for LQDW.

Which has better risk-adjusted returns?

LQDW currently has the higher Sharpe Ratio (1.37 vs 1.01), 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.