IGCB vs. LQDW

Last updated Jun 4, 2026

IGCB (TCW Corporate Bond ETF) and LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) are both Corporate Bonds funds - IGCB tracks the Actively Managed while LQDW tracks the CBOE LQD BuyWrite Index. Both are passively managed. Over the past year, IGCB returned 5.37% vs 6.49% for LQDW. A 0.66 correlation means they provide meaningful diversification when combined. IGCB charges 0.35%/yr vs 0.34%/yr for LQDW.

Performance

IGCB vs. LQDW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in TCW Corporate Bond ETF (IGCB) 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, IGCB achieves a 0.08% return, which is significantly lower than LQDW's 1.25% return.

IGCB

• 1D: -0.30%
• 1M: 0.37%
• YTD: 0.08%
• 6M: -0.02%
• 1Y: 5.37%
• 3Y*: —
• 5Y*: —
• 10Y*: —

LQDW

• 1D: -0.20%
• 1M: 0.83%
• YTD: 1.25%
• 6M: 1.65%
• 1Y: 6.49%
• 3Y*: 3.79%
• 5Y*: —
• 10Y*: —

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

IGCB vs. LQDW - Yearly Performance Comparison

	2026 (YTD)	2025	2024
IGCB TCW Corporate Bond ETF	0.08%	8.42%	-0.39%
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	1.25%	9.05%	-0.08%

Correlation

The correlation between IGCB and LQDW is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (All Time) Calculated using the full available price history since Nov 19, 2024	0.66

The correlation between IGCB and LQDW has been stable across timeframes, ranging from 0.66 to 0.70 - a consistent structural relationship.

Return for Risk

IGCB vs. LQDW — Risk / Return Rank

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

IGCB

IGCB Risk / Return Rank: 38
IGCB Sharpe Ratio Rank: 39
IGCB Sortino Ratio Rank: 38
IGCB Omega Ratio Rank: 38
IGCB Calmar Ratio Rank: 38
IGCB Martin Ratio Rank: 37

LQDW

LQDW Risk / Return Rank: 54
LQDW Sharpe Ratio Rank: 53
LQDW Sortino Ratio Rank: 53
LQDW Omega Ratio Rank: 61
LQDW Calmar Ratio Rank: 50
LQDW Martin Ratio Rank: 54

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.

IGCB vs. LQDW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for TCW Corporate Bond ETF (IGCB) 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.

	IGCB	LQDW	Difference
Sharpe ratio: Return per unit of total volatility	1.38	1.85	-0.47
Sortino ratio: Return per unit of downside risk	1.96	2.62	-0.66
Omega ratio: Gain probability vs. loss probability	1.25	1.38	-0.13
Calmar ratio: Return relative to maximum drawdown	1.85	2.51	-0.66
Martin ratio: Return relative to average drawdown	5.69	9.39	-3.70
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IGCB vs. LQDW - Sharpe Ratio Comparison

The current IGCB Sharpe Ratio is 1.38, which is comparable to the LQDW Sharpe Ratio of 1.85. The chart below compares the historical Sharpe Ratios of IGCB 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.

Sharpe Ratios by Period

	IGCB	LQDW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.38	1.85	-0.47
Sharpe Ratio (All Time) Calculated using the full available price history	1.09	0.46	+0.63

Drawdowns

IGCB vs. LQDW - Drawdown Comparison

The maximum IGCB drawdown since its inception was -4.20%, smaller than the maximum LQDW drawdown of -9.20%. Use the drawdown chart below to compare losses from any high point for IGCB and LQDW.

Drawdown Indicators

	IGCB	LQDW	Difference
Max Drawdown Largest peak-to-trough decline	-4.20%	-9.20%	+5.00%
Max Drawdown (1Y) Largest decline over 1 year	-2.91%	-2.59%	-0.32%
Max Drawdown (3Y) Largest decline over 3 years	—	-6.74%	—
Current Drawdown Current decline from peak	-1.31%	-0.35%	-0.96%
Average Drawdown Average peak-to-trough decline	-0.93%	-2.35%	+1.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	0.69%	+0.26%

Volatility

IGCB vs. LQDW - Volatility Comparison

The current volatility for TCW Corporate Bond ETF (IGCB) is 1.35%, while iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) has a volatility of 1.46%. This indicates that IGCB experiences smaller price fluctuations and is considered to be less risky than LQDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IGCB	LQDW	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.35%	1.46%	-0.11%
Volatility (6M) Calculated over the trailing 6-month period	2.78%	3.02%	-0.24%
Volatility (1Y) Calculated over the trailing 1-year period	3.92%	3.53%	+0.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.82%	5.49%	-0.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.82%	5.49%	-0.67%

IGCB vs. LQDW - Expense Ratio Comparison

IGCB has a 0.35% expense ratio, which is higher than LQDW's 0.34% expense ratio.

Dividends

IGCB vs. LQDW - Dividend Comparison

IGCB's dividend yield for the trailing twelve months is around 4.75%, less than LQDW's 12.57% yield.

Position	TTM	2025	2024	2023	2022
IGCB TCW Corporate Bond ETF	4.75%	4.52%	0.66%	0.00%	0.00%
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	12.57%	16.02%	15.74%	19.28%	8.85%

Frequently Asked Questions

Can I hold both IGCB and LQDW in my portfolio?

IGCB and LQDW have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IGCB or LQDW?

LQDW has higher volatility (1.46%) compared to IGCB (1.35%). In terms of maximum drawdown, IGCB dropped -4.20% vs LQDW's -9.20%.

Which ETF is better, IGCB or LQDW?

On 1-year performance, LQDW leads with 6.49% vs 5.37% for IGCB. On fees, LQDW is cheaper at 0.34% per year. On volatility, IGCB has been the lower-risk option at 1.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IGCB or LQDW?

Over the 1-year period, LQDW has performed better with a 6.49% return vs 5.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IGCB or LQDW?

LQDW is cheaper with a 0.34% expense ratio, compared with 0.35% for IGCB.

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

LQDW has the higher dividend yield at 12.57%, compared with 4.75% for IGCB.

What is the main difference between IGCB and LQDW?

IGCB tracks Actively Managed, while LQDW tracks CBOE LQD BuyWrite Index. They also come from different issuers: TCW and iShares. Their fees differ too: 0.35% for IGCB and 0.34% for LQDW.

Which has better risk-adjusted returns?

LQDW currently has the higher Sharpe Ratio (1.85 vs 1.38), 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.