IEF vs. LQD
Compare and contrast key facts about iShares 7-10 Year Treasury Bond ETF (IEF) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).
IEF and LQD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IEF is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 7-10 Year Treasury Bond Index. It was launched on Jul 26, 2002. 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 IEF 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
IEF vs. LQD - Performance Comparison
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IEF vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | -0.14% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.38% | 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, IEF achieves a -0.14% return, which is significantly higher than LQD's -0.38% return. Over the past 10 years, IEF has underperformed LQD with an annualized return of 0.78%, while LQD has yielded a comparatively higher 2.61% annualized return.
IEF
- 1D
- 0.18%
- 1M
- -2.32%
- YTD
- -0.14%
- 6M
- 0.79%
- 1Y
- 3.95%
- 3Y*
- 2.25%
- 5Y*
- -0.76%
- 10Y*
- 0.78%
LQD
- 1D
- 0.63%
- 1M
- -2.07%
- YTD
- -0.38%
- 6M
- -0.04%
- 1Y
- 4.88%
- 3Y*
- 4.26%
- 5Y*
- 0.09%
- 10Y*
- 2.61%
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IEF vs. LQD - Expense Ratio Comparison
Both IEF and LQD have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Return for Risk
IEF vs. LQD — Risk / Return Rank
IEF
LQD
IEF vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) 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.
| IEF | LQD | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 0.74 | 0.74 | 0.00 |
Sortino ratioReturn per unit of downside risk | 1.09 | 1.04 | +0.05 |
Omega ratioGain probability vs. loss probability | 1.13 | 1.14 | -0.01 |
Calmar ratioReturn relative to maximum drawdown | 1.32 | 1.50 | -0.18 |
Martin ratioReturn relative to average drawdown | 3.31 | 4.15 | -0.84 |
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
| IEF | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.74 | 0.74 | 0.00 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.10 | 0.01 | -0.11 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.12 | 0.30 | -0.18 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.51 | 0.54 | -0.03 |
Correlation
The correlation between IEF and LQD is 0.76, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Dividends
IEF vs. LQD - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.82%, less than LQD's 4.52% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.82% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.52% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
Drawdowns
IEF vs. LQD - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, roughly equal to the maximum LQD drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for IEF and LQD.
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Drawdown Indicators
| IEF | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -24.95% | +1.02% |
Max Drawdown (1Y)Largest decline over 1 year | -3.22% | -3.38% | +0.16% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -24.95% | +3.55% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -24.95% | +1.02% |
Current DrawdownCurrent decline from peak | -10.88% | -4.52% | -6.36% |
Average DrawdownAverage peak-to-trough decline | -5.30% | -3.99% | -1.31% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.28% | 1.22% | +0.06% |
Volatility
IEF vs. LQD - Volatility Comparison
The current volatility for iShares 7-10 Year Treasury Bond ETF (IEF) is 1.91%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 2.65%. This indicates that IEF 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
| IEF | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.91% | 2.65% | -0.74% |
Volatility (6M)Calculated over the trailing 6-month period | 3.22% | 3.76% | -0.54% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.35% | 6.60% | -1.25% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.70% | 8.66% | -0.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.63% | 8.67% | -2.04% |