LKOR vs. USHY
Compare and contrast key facts about FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund (LKOR) and iShares Broad USD High Yield Corporate Bond ETF (USHY).
LKOR and USHY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. LKOR is a passively managed fund by Northern Trust that tracks the performance of the Northern Trust US Long Corporate Bond Quality Value Index. It was launched on Sep 24, 2015. USHY is a passively managed fund by iShares that tracks the performance of the ICE BofA US High Yield Constrained. It was launched on Oct 25, 2017. Both LKOR and USHY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: LKOR or USHY.
Key characteristics
| LKOR | USHY | |
|---|---|---|
| YTD Return | 1.06% | 8.44% |
| 1Y Return | 14.37% | 14.46% |
| 3Y Return (Ann) | -5.73% | 3.04% |
| 5Y Return (Ann) | -0.45% | 4.40% |
| Sharpe Ratio | 1.27 | 3.23 |
| Sortino Ratio | 1.85 | 5.16 |
| Omega Ratio | 1.22 | 1.66 |
| Calmar Ratio | 0.50 | 2.72 |
| Martin Ratio | 4.25 | 25.41 |
| Ulcer Index | 3.33% | 0.56% |
| Daily Std Dev | 11.14% | 4.44% |
| Max Drawdown | -34.78% | -22.44% |
| Current Drawdown | -18.23% | -0.45% |
Correlation
The correlation between LKOR and USHY is 0.43, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
LKOR vs. USHY - Performance Comparison
In the year-to-date period, LKOR achieves a 1.06% return, which is significantly lower than USHY's 8.44% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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LKOR vs. USHY - Expense Ratio Comparison
LKOR has a 0.22% expense ratio, which is higher than USHY'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%.
Risk-Adjusted Performance
LKOR vs. USHY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund (LKOR) and iShares Broad USD High Yield Corporate Bond ETF (USHY). 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.
Dividends
LKOR vs. USHY - Dividend Comparison
LKOR's dividend yield for the trailing twelve months is around 5.32%, less than USHY's 6.68% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|
LKOR FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund | 5.32% | 4.89% | 4.71% | 4.73% | 6.56% | 3.71% | 4.21% | 3.78% | 5.53% | 1.22% |
USHY iShares Broad USD High Yield Corporate Bond ETF | 6.68% | 6.62% | 6.08% | 5.07% | 5.31% | 5.91% | 6.30% | 0.73% | 0.00% | 0.00% |
Drawdowns
LKOR vs. USHY - Drawdown Comparison
The maximum LKOR drawdown since its inception was -34.78%, which is greater than USHY's maximum drawdown of -22.44%. Use the drawdown chart below to compare losses from any high point for LKOR and USHY. For additional features, visit the drawdowns tool.
Volatility
LKOR vs. USHY - Volatility Comparison
FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund (LKOR) has a higher volatility of 3.95% compared to iShares Broad USD High Yield Corporate Bond ETF (USHY) at 1.06%. This indicates that LKOR's price experiences larger fluctuations and is considered to be riskier than USHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.