LQD vs. BVDAX

Last updated Jun 24, 2026

LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and BVDAX (BlackRock 60/40 Target Allocation ETF VI Fund) are both funds - LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index, while BVDAX is a Diversified Portfolio fund managed by BlackRock. Over the past 5 years, LQD returned -0.25%/yr vs 7.86%/yr for BVDAX. At a 0.39 correlation, their price movements are largely independent. LQD charges 0.15%/yr vs 0.19%/yr for BVDAX.

Performance

LQD vs. BVDAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and BlackRock 60/40 Target Allocation ETF VI Fund (BVDAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LQD achieves a 0.73% return, which is significantly lower than BVDAX's 9.42% return.

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%

BVDAX

• 1D: -0.12%
• 1M: 1.88%
• YTD: 9.42%
• 6M: 8.90%
• 1Y: 20.67%
• 3Y*: 14.79%
• 5Y*: 7.86%
• 10Y*: —

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

LQD vs. BVDAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%	6.90%
BVDAX BlackRock 60/40 Target Allocation ETF VI Fund	9.42%	15.69%	11.32%	15.88%	-14.80%	11.98%	14.68%	21.40%	-6.69%	13.51%

Correlation

The correlation between LQD and BVDAX is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (All Time) Calculated using the full available price history since Feb 1, 2017	0.39

The correlation between LQD and BVDAX shifts across timeframes, from 0.39 (all time) to 0.57 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

LQD vs. BVDAX — Risk / Return Rank

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

LQD

LQD Risk / Return Rank: 28
LQD Sharpe Ratio Rank: 28
LQD Sortino Ratio Rank: 27
LQD Omega Ratio Rank: 24
LQD Calmar Ratio Rank: 32
LQD Martin Ratio Rank: 31

BVDAX

BVDAX Risk / Return Rank: 72
BVDAX Sharpe Ratio Rank: 72
BVDAX Sortino Ratio Rank: 72
BVDAX Omega Ratio Rank: 70
BVDAX Calmar Ratio Rank: 70
BVDAX Martin Ratio Rank: 78

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.

LQD vs. BVDAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and BlackRock 60/40 Target Allocation ETF VI Fund (BVDAX). 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.

	LQD	BVDAX	Difference
Sharpe ratio: Return per unit of total volatility	0.96	2.26	-1.30
Sortino ratio: Return per unit of downside risk	1.43	3.20	-1.78
Omega ratio: Gain probability vs. loss probability	1.17	1.43	-0.26
Calmar ratio: Return relative to maximum drawdown	1.53	3.09	-1.55
Martin ratio: Return relative to average drawdown	4.28	13.59	-9.32

LQD vs. BVDAX - Sharpe Ratio Comparison

The current LQD Sharpe Ratio is 0.96, which is lower than the BVDAX Sharpe Ratio of 2.26. The chart below compares the historical Sharpe Ratios of LQD and BVDAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LQD vs. BVDAX - Drawdown Comparison

The maximum LQD drawdown since its inception was -24.95%, which is greater than BVDAX's maximum drawdown of -22.25%. Use the drawdown chart below to compare losses from any high point for LQD and BVDAX.

Drawdown Indicators

	LQD	BVDAX	Difference
Max Drawdown Largest peak-to-trough decline	-24.95%	-22.25%	-2.70%
Max Drawdown (1Y) Largest decline over 1 year	-3.34%	-7.03%	+3.69%
Max Drawdown (3Y) Largest decline over 3 years	-8.43%	-15.93%	+7.50%
Max Drawdown (5Y) Largest decline over 5 years	-24.95%	-20.57%	-4.38%
Max Drawdown (10Y) Largest decline over 10 years	-24.95%	—	—
Current Drawdown Current decline from peak	-3.46%	-0.31%	-3.15%
Average Drawdown Average peak-to-trough decline	-3.99%	-3.86%	-0.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.19%	1.59%	-0.40%

Volatility

LQD vs. BVDAX - Volatility Comparison

The current volatility for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is 1.42%, while BlackRock 60/40 Target Allocation ETF VI Fund (BVDAX) has a volatility of 3.95%. This indicates that LQD experiences smaller price fluctuations and is considered to be less risky than BVDAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LQD	BVDAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.42%	3.95%	-2.53%
Volatility (6M) Calculated over the trailing 6-month period	3.98%	8.17%	-4.19%
Volatility (1Y) Calculated over the trailing 1-year period	5.32%	9.60%	-4.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.65%	12.35%	-3.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.69%	12.16%	-3.47%

LQD vs. BVDAX - Expense Ratio Comparison

LQD has a 0.15% expense ratio, which is lower than BVDAX's 0.19% 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

LQD vs. BVDAX - Dividend Comparison

LQD's dividend yield for the trailing twelve months is around 4.56%, less than BVDAX's 5.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BVDAX BlackRock 60/40 Target Allocation ETF VI Fund	5.74%	6.28%	8.43%	2.01%	2.23%	9.51%	1.69%	2.94%	2.52%	0.00%	0.00%	0.00%
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

Can I hold both LQD and BVDAX in my portfolio?

LQD and BVDAX have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LQD or BVDAX?

BVDAX has higher volatility (3.95%) compared to LQD (1.42%). In terms of maximum drawdown, LQD dropped -24.95% vs BVDAX's -22.25%.

Which has better risk-adjusted returns?

BVDAX currently has the higher Sharpe Ratio (2.26 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.