LQD vs. DFAI
LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and DFAI (Dimensional International Core Equity Market ETF) are both exchange-traded funds - LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index, while DFAI is a Foreign Large Cap Equities fund actively managed by Dimensional. LQD is passively managed, while DFAI is actively managed. Over the past 5 years, LQD returned -0.10%/yr vs 9.68%/yr for DFAI. At a 0.34 correlation, their price movements are largely independent. LQD charges 0.15%/yr vs 0.18%/yr for DFAI.
Performance
LQD vs. DFAI - Performance Comparison
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Returns By Period
In the year-to-date period, LQD achieves a 0.80% return, which is significantly lower than DFAI's 10.55% return.
LQD
- 1D
- -0.02%
- 1M
- 1.43%
- YTD
- 0.80%
- 6M
- 1.10%
- 1Y
- 5.78%
- 3Y*
- 4.95%
- 5Y*
- -0.10%
- 10Y*
- 2.52%
DFAI
- 1D
- 0.45%
- 1M
- 2.91%
- YTD
- 10.55%
- 6M
- 11.38%
- 1Y
- 25.58%
- 3Y*
- 17.58%
- 5Y*
- 9.68%
- 10Y*
- —
LQD vs. DFAI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.80% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 1.50% |
DFAI Dimensional International Core Equity Market ETF | 10.55% | 34.04% | 4.68% | 17.60% | -12.95% | 13.86% | 5.34% |
Correlation
The correlation between LQD and DFAI is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.49 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.44 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since Nov 18, 2020 | 0.34 |
The correlation between LQD and DFAI shifts across timeframes, from 0.34 (all time) to 0.49 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
LQD vs. DFAI — Risk / Return Rank
LQD
DFAI
LQD vs. DFAI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and Dimensional International Core Equity Market ETF (DFAI). 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 | DFAI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.67 | ||
| Sortino ratioReturn per unit of downside risk | -0.87 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.32 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 1.74 | 2.35 | -0.61 |
| Martin ratioReturn relative to average drawdown | 4.88 | 9.14 | -4.25 |
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Drawdowns
LQD vs. DFAI - Drawdown Comparison
The maximum LQD drawdown since its inception was -24.95%, smaller than the maximum DFAI drawdown of -27.44%. Use the drawdown chart below to compare losses from any high point for LQD and DFAI.
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Drawdown Indicators
| LQD | DFAI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.95% | -27.44% | +2.49% |
Max Drawdown (1Y)Largest decline over 1 year | -3.34% | -10.95% | +7.61% |
Max Drawdown (3Y)Largest decline over 3 years | -8.43% | -13.25% | +4.82% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -27.44% | +2.49% |
Max Drawdown (10Y)Largest decline over 10 years | -24.95% | — | — |
Current DrawdownCurrent decline from peak | -3.39% | -0.35% | -3.04% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -5.10% | +1.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.19% | 2.81% | -1.62% |
Volatility
LQD vs. DFAI - Volatility Comparison
The current volatility for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is 1.78%, while Dimensional International Core Equity Market ETF (DFAI) has a volatility of 5.12%. This indicates that LQD experiences smaller price fluctuations and is considered to be less risky than DFAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LQD | DFAI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.78% | 5.12% | -3.34% |
Volatility (6M)Calculated over the trailing 6-month period | 4.02% | 12.28% | -8.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.32% | 14.58% | -9.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 16.01% | -7.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.69% | 15.74% | -7.05% |
LQD vs. DFAI - Expense Ratio Comparison
LQD has a 0.15% expense ratio, which is lower than DFAI's 0.18% 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. DFAI - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.55%, more than DFAI's 2.23% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFAI Dimensional International Core Equity Market ETF | 2.23% | 2.45% | 2.72% | 2.64% | 2.72% | 2.06% | 0.09% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.55% | 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
LQD and DFAI have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DFAI has higher volatility (5.12%) compared to LQD (1.78%). In terms of maximum drawdown, LQD dropped -24.95% vs DFAI's -27.44%.
On 5-year performance, DFAI leads with 9.68% vs -0.10% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, LQD has been the lower-risk option at 1.78%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, DFAI has performed better with a 9.68% return vs -0.10%. 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 DFAI.
LQD has the higher dividend yield at 4.55%, compared with 2.23% for DFAI.
LQD is categorized as Corporate Bonds, while DFAI is Foreign Large Cap Equities. They also come from different issuers: iShares and Dimensional. Their fees differ too: 0.15% for LQD and 0.18% for DFAI.
DFAI currently has the higher Sharpe Ratio (1.77 vs 1.09), 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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