IEMG vs. LQD
IEMG (iShares Core MSCI Emerging Markets ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net), while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, IEMG returned 9.88%/yr vs 2.41%/yr for LQD. At a 0.15 correlation, their price movements are largely independent. IEMG charges 0.09%/yr vs 0.15%/yr for LQD.
Performance
IEMG vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, IEMG achieves a 18.97% return, which is significantly higher than LQD's -0.06% return. Over the past 10 years, IEMG has outperformed LQD with an annualized return of 9.88%, while LQD has yielded a comparatively lower 2.41% annualized return.
IEMG
- 1D
- 1.70%
- 1M
- -3.66%
- YTD
- 18.97%
- 6M
- 20.80%
- 1Y
- 40.80%
- 3Y*
- 20.51%
- 5Y*
- 6.57%
- 10Y*
- 9.88%
LQD
- 1D
- -0.10%
- 1M
- -0.67%
- YTD
- -0.06%
- 6M
- -0.06%
- 1Y
- 5.73%
- 3Y*
- 4.95%
- 5Y*
- -0.28%
- 10Y*
- 2.41%
IEMG vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEMG iShares Core MSCI Emerging Markets ETF | 18.97% | 32.56% | 6.50% | 11.52% | -19.98% | -0.64% | 17.87% | 17.81% | -14.92% | 37.38% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.06% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between IEMG and LQD is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.40 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.21 |
Correlation (All Time) Calculated using the full available price history since Oct 25, 2012 | 0.15 |
Over the past year, IEMG and LQD have become more correlated (0.40) than their long-term average of 0.15, meaning their price movements have been converging.
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Return for Risk
IEMG vs. LQD — Risk / Return Rank
IEMG
LQD
IEMG vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI Emerging Markets ETF (IEMG) 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.
| IEMG | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.91 | ||
| Sortino ratioReturn per unit of downside risk | +1.00 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.19 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 3.10 | 1.72 | +1.38 |
| Martin ratioReturn relative to average drawdown | 11.68 | 4.88 | +6.80 |
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
| IEMG | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.99 | 1.08 | +0.91 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.35 | -0.03 | +0.39 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.49 | 0.28 | +0.21 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.33 | 0.54 | -0.21 |
Drawdowns
IEMG vs. LQD - Drawdown Comparison
The maximum IEMG drawdown since its inception was -38.71%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for IEMG and LQD.
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Drawdown Indicators
| IEMG | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.71% | -24.95% | -13.76% |
Max Drawdown (1Y)Largest decline over 1 year | -13.21% | -3.34% | -9.87% |
Max Drawdown (3Y)Largest decline over 3 years | -17.21% | -8.43% | -8.78% |
Max Drawdown (5Y)Largest decline over 5 years | -35.75% | -24.95% | -10.80% |
Max Drawdown (10Y)Largest decline over 10 years | -38.71% | -24.95% | -13.76% |
Current DrawdownCurrent decline from peak | -7.00% | -4.21% | -2.79% |
Average DrawdownAverage peak-to-trough decline | -12.97% | -3.99% | -8.98% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.50% | 1.18% | +2.32% |
Volatility
IEMG vs. LQD - Volatility Comparison
iShares Core MSCI Emerging Markets ETF (IEMG) has a higher volatility of 10.33% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.62%. This indicates that IEMG's price experiences larger fluctuations and is considered to be riskier 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
| IEMG | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.33% | 1.62% | +8.71% |
Volatility (6M)Calculated over the trailing 6-month period | 18.35% | 3.94% | +14.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.62% | 5.32% | +15.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.62% | 8.65% | +9.97% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.14% | 8.68% | +11.46% |
IEMG vs. LQD - Expense Ratio Comparison
IEMG has a 0.09% 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
IEMG vs. LQD - Dividend Comparison
IEMG's dividend yield for the trailing twelve months is around 2.31%, less than LQD's 4.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEMG iShares Core MSCI Emerging Markets ETF | 2.31% | 2.75% | 3.20% | 2.89% | 2.71% | 3.06% | 1.87% | 3.15% | 2.76% | 2.35% | 2.28% | 2.53% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.59% | 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
IEMG and LQD have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEMG has higher volatility (10.33%) compared to LQD (1.62%). In terms of maximum drawdown, IEMG dropped -38.71% vs LQD's -24.95%.
On 10-year performance, IEMG leads with 9.88% vs 2.41% for LQD. On fees, IEMG is cheaper at 0.09% per year. On volatility, LQD has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IEMG has performed better with a 9.88% return vs 2.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEMG is cheaper with a 0.09% expense ratio, compared with 0.15% for LQD.
LQD has the higher dividend yield at 4.59%, compared with 2.31% for IEMG.
IEMG is categorized as Emerging Markets Diversified, while LQD is Corporate Bonds. IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net), while LQD tracks iBoxx $ Liquid Investment Grade Index. Their fees differ too: 0.09% for IEMG and 0.15% for LQD.
IEMG currently has the higher Sharpe Ratio (1.99 vs 1.08), 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.
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