IYT vs. LQD
IYT (iShares Transportation Average ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - IYT is a Transportation Equities fund tracking the Dow Jones Transportation Average Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, IYT returned 11.13%/yr vs 2.48%/yr for LQD. At a 0.02 correlation, their price movements are largely independent. IYT charges 0.42%/yr vs 0.15%/yr for LQD.
Performance
IYT vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, IYT achieves a 13.27% return, which is significantly higher than LQD's 0.73% return. Over the past 10 years, IYT has outperformed LQD with an annualized return of 11.13%, while LQD has yielded a comparatively lower 2.48% annualized return.
IYT
- 1D
- -0.78%
- 1M
- 3.24%
- YTD
- 13.27%
- 6M
- 12.06%
- 1Y
- 27.89%
- 3Y*
- 13.54%
- 5Y*
- 6.34%
- 10Y*
- 11.13%
LQD
- 1D
- 0.12%
- 1M
- 0.88%
- YTD
- 0.73%
- 6M
- 0.70%
- 1Y
- 5.10%
- 3Y*
- 4.92%
- 5Y*
- -0.25%
- 10Y*
- 2.48%
IYT vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYT iShares Transportation Average ETF | 13.27% | 11.48% | 4.10% | 24.62% | -21.74% | 26.41% | 14.20% | 20.11% | -12.87% | 18.89% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.73% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between IYT and LQD is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.33 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.26 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.25 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.13 |
Correlation (All Time) Calculated using the full available price history since Oct 10, 2003 | 0.02 |
Over the past year, IYT and LQD have become more correlated (0.33) than their long-term average of 0.02, meaning their price movements have been converging.
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Return for Risk
IYT vs. LQD — Risk / Return Rank
IYT
LQD
IYT vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Transportation Average ETF (IYT) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| IYT | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.40 | ||
| Sortino ratioReturn per unit of downside risk | +0.52 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.17 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 2.32 | 1.53 | +0.79 |
| Martin ratioReturn relative to average drawdown | 7.51 | 4.28 | +3.23 |
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Drawdowns
IYT vs. LQD - Drawdown Comparison
The maximum IYT drawdown since its inception was -60.39%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for IYT and LQD.
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Drawdown Indicators
| IYT | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -60.39% | -24.95% | -35.44% |
Max Drawdown (1Y)Largest decline over 1 year | -12.09% | -3.34% | -8.75% |
Max Drawdown (3Y)Largest decline over 3 years | -26.35% | -8.43% | -17.92% |
Max Drawdown (5Y)Largest decline over 5 years | -29.15% | -24.95% | -4.20% |
Max Drawdown (10Y)Largest decline over 10 years | -41.28% | -24.95% | -16.33% |
Current DrawdownCurrent decline from peak | -2.97% | -3.46% | +0.49% |
Average DrawdownAverage peak-to-trough decline | -9.30% | -3.99% | -5.31% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.72% | 1.19% | +2.53% |
Volatility
IYT vs. LQD - Volatility Comparison
iShares Transportation Average ETF (IYT) has a higher volatility of 7.09% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.42%. This indicates that IYT'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
| IYT | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.09% | 1.42% | +5.67% |
Volatility (6M)Calculated over the trailing 6-month period | 16.27% | 3.98% | +12.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.70% | 5.32% | +15.38% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.40% | 8.65% | +13.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.16% | 8.69% | +14.47% |
IYT vs. LQD - Expense Ratio Comparison
IYT has a 0.42% expense ratio, which is higher than LQD's 0.15% expense ratio.
Dividends
IYT vs. LQD - Dividend Comparison
IYT's dividend yield for the trailing twelve months is around 0.93%, less than LQD's 4.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYT iShares Transportation Average ETF | 0.93% | 1.00% | 1.08% | 1.26% | 1.40% | 0.77% | 0.93% | 1.29% | 1.35% | 0.92% | 0.96% | 1.28% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.56% | 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
IYT and LQD have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYT has higher volatility (7.09%) compared to LQD (1.42%). In terms of maximum drawdown, IYT dropped -60.39% vs LQD's -24.95%.
On 10-year performance, IYT leads with 11.13% vs 2.48% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, LQD has been the lower-risk option at 1.42%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYT has performed better with a 11.13% return vs 2.48%. 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 0.42% for IYT.
LQD has the higher dividend yield at 4.56%, compared with 0.93% for IYT.
IYT is categorized as Transportation Equities, while LQD is Corporate Bonds. IYT tracks Dow Jones Transportation Average Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. Their fees differ too: 0.42% for IYT and 0.15% for LQD.
IYT currently has the higher Sharpe Ratio (1.36 vs 0.96), 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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