IGEB vs. LQD
IGEB (iShares Investment Grade Bond Factor ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both Corporate Bonds funds from iShares - IGEB tracks the BlackRock Investment Grade Enhanced Bond Index while LQD tracks the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 5 years, IGEB returned 1.10%/yr vs -0.04%/yr for LQD. Their correlation of 0.90 suggests significant overlap in exposure. IGEB charges 0.18%/yr vs 0.15%/yr for LQD.
Performance
IGEB vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, IGEB achieves a 0.41% return, which is significantly lower than LQD's 0.46% return.
IGEB
- 1D
- -0.22%
- 1M
- 0.57%
- YTD
- 0.41%
- 6M
- 0.32%
- 1Y
- 5.98%
- 3Y*
- 5.88%
- 5Y*
- 1.10%
- 10Y*
- —
LQD
- 1D
- -0.28%
- 1M
- 0.72%
- YTD
- 0.46%
- 6M
- -0.03%
- 1Y
- 6.08%
- 3Y*
- 4.95%
- 5Y*
- -0.04%
- 10Y*
- 2.52%
IGEB vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IGEB iShares Investment Grade Bond Factor ETF | 0.41% | 8.17% | 3.10% | 9.56% | -14.85% | -1.14% | 11.23% | 15.42% | -2.05% | 1.53% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.46% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 2.62% |
Correlation
The correlation between IGEB and LQD is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since Jul 14, 2017 | 0.90 |
The correlation between IGEB and LQD has been stable across timeframes, ranging from 0.90 to 0.98 - a consistent structural relationship.
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Return for Risk
IGEB vs. LQD — Risk / Return Rank
IGEB
LQD
IGEB vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Investment Grade Bond Factor ETF (IGEB) 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.
| IGEB | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.30 | ||
| Sortino ratioReturn per unit of downside risk | +0.45 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.20 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.08 | 1.83 | +0.25 |
| Martin ratioReturn relative to average drawdown | 6.81 | 5.23 | +1.59 |
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
| IGEB | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.44 | 1.14 | +0.30 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.17 | -0.01 | +0.17 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.29 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.49 | 0.54 | -0.05 |
Drawdowns
IGEB vs. LQD - Drawdown Comparison
The maximum IGEB drawdown since its inception was -21.13%, smaller than the maximum LQD drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for IGEB and LQD.
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Drawdown Indicators
| IGEB | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.13% | -24.95% | +3.82% |
Max Drawdown (1Y)Largest decline over 1 year | -2.88% | -3.34% | +0.46% |
Max Drawdown (3Y)Largest decline over 3 years | -5.97% | -8.43% | +2.46% |
Max Drawdown (5Y)Largest decline over 5 years | -21.13% | -24.95% | +3.82% |
Max Drawdown (10Y)Largest decline over 10 years | — | -24.95% | — |
Current DrawdownCurrent decline from peak | -1.03% | -3.72% | +2.69% |
Average DrawdownAverage peak-to-trough decline | -4.90% | -3.99% | -0.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.88% | 1.17% | -0.29% |
Volatility
IGEB vs. LQD - Volatility Comparison
The current volatility for iShares Investment Grade Bond Factor ETF (IGEB) is 1.33%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 1.65%. This indicates that IGEB 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
| IGEB | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.33% | 1.65% | -0.32% |
Volatility (6M)Calculated over the trailing 6-month period | 3.07% | 3.90% | -0.83% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.16% | 5.36% | -1.20% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.70% | 8.65% | -1.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.52% | 8.68% | -2.16% |
IGEB vs. LQD - Expense Ratio Comparison
IGEB has a 0.18% expense ratio, which is higher than LQD's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
IGEB vs. LQD - Dividend Comparison
IGEB's dividend yield for the trailing twelve months is around 5.06%, more than LQD's 4.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IGEB iShares Investment Grade Bond Factor ETF | 5.06% | 4.92% | 5.09% | 4.60% | 3.64% | 3.84% | 3.78% | 5.61% | 3.59% | 1.62% | 0.00% | 0.00% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.57% | 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
With a correlation of 0.97, IGEB and LQD move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
LQD has higher volatility (1.65%) compared to IGEB (1.33%). In terms of maximum drawdown, IGEB dropped -21.13% vs LQD's -24.95%.
On 5-year performance, IGEB leads with 1.10% vs -0.04% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, IGEB has been the lower-risk option at 1.33%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, IGEB has performed better with a 1.10% return vs -0.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LQD is cheaper with a 0.15% expense ratio, compared with 0.18% for IGEB.
IGEB has the higher dividend yield at 5.06%, compared with 4.57% for LQD.
IGEB tracks BlackRock Investment Grade Enhanced Bond Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. Their fees differ too: 0.18% for IGEB and 0.15% for LQD.
IGEB currently has the higher Sharpe Ratio (1.44 vs 1.14), 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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