ICVT vs. LKOR
Compare and contrast key facts about iShares Convertible Bond ETF (ICVT) and FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund (LKOR).
ICVT and LKOR are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ICVT is a passively managed fund by iShares that tracks the performance of the Barclays U.S. Convertible Cash Pay Bond > $250MM Index. It was launched on Jun 2, 2015. LKOR is a passively managed fund by Northern Trust that tracks the performance of the Northern Trust US Long Corporate Bond Quality Value Index. It was launched on Sep 24, 2015. Both ICVT and LKOR 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: ICVT or LKOR.
Key characteristics
| ICVT | LKOR | |
|---|---|---|
| YTD Return | 0.08% | -3.83% |
| 1Y Return | 11.02% | 2.10% |
| 3Y Return (Ann) | -3.04% | -5.31% |
| 5Y Return (Ann) | 9.72% | 0.94% |
| Sharpe Ratio | 1.32 | 0.22 |
| Daily Std Dev | 8.24% | 12.95% |
| Max Drawdown | -33.25% | -34.78% |
| Current Drawdown | -20.24% | -22.19% |
Correlation
The correlation between ICVT and LKOR is 0.16, 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.
Performance
ICVT vs. LKOR - Performance Comparison
In the year-to-date period, ICVT achieves a 0.08% return, which is significantly higher than LKOR's -3.83% 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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ICVT vs. LKOR - Expense Ratio Comparison
ICVT has a 0.20% expense ratio, which is lower than LKOR's 0.22% 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%.
Risk-Adjusted Performance
ICVT vs. LKOR - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Convertible Bond ETF (ICVT) and FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund (LKOR). 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
ICVT vs. LKOR - Dividend Comparison
ICVT's dividend yield for the trailing twelve months is around 2.09%, less than LKOR's 5.38% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|
ICVT iShares Convertible Bond ETF | 2.09% | 1.85% | 1.93% | 7.70% | 3.98% | 1.86% | 4.82% | 2.56% | 3.06% | 1.57% |
LKOR FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund | 5.38% | 4.90% | 4.71% | 4.73% | 6.56% | 3.71% | 4.21% | 3.78% | 5.53% | 1.22% |
Drawdowns
ICVT vs. LKOR - Drawdown Comparison
The maximum ICVT drawdown since its inception was -33.25%, roughly equal to the maximum LKOR drawdown of -34.78%. Use the drawdown chart below to compare losses from any high point for ICVT and LKOR. For additional features, visit the drawdowns tool.
Volatility
ICVT vs. LKOR - Volatility Comparison
The current volatility for iShares Convertible Bond ETF (ICVT) is 2.64%, while FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund (LKOR) has a volatility of 3.08%. This indicates that ICVT experiences smaller price fluctuations and is considered to be less risky than LKOR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.