LQD vs. FXI
LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and FXI (iShares China Large-Cap ETF) are both exchange-traded funds - LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index, while FXI is a China Equities fund tracking the FTSE China 50 Index. Both are passively managed. Over the past 10 years, LQD returned 2.41%/yr vs 2.76%/yr for FXI. At a 0.03 correlation, their price movements are largely independent. LQD charges 0.15%/yr vs 0.74%/yr for FXI.
Performance
LQD vs. FXI - Performance Comparison
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Returns By Period
In the year-to-date period, LQD achieves a -0.06% return, which is significantly higher than FXI's -9.43% return. Over the past 10 years, LQD has underperformed FXI with an annualized return of 2.41%, while FXI has yielded a comparatively higher 2.76% annualized return.
LQD
- 1D
- -0.10%
- 1M
- -0.67%
- YTD
- -0.06%
- 6M
- -0.06%
- 1Y
- 5.73%
- 3Y*
- 4.95%
- 5Y*
- -0.28%
- 10Y*
- 2.41%
FXI
- 1D
- -0.20%
- 1M
- -6.87%
- YTD
- -9.43%
- 6M
- -11.18%
- 1Y
- -2.84%
- 3Y*
- 10.10%
- 5Y*
- -3.36%
- 10Y*
- 2.76%
LQD vs. FXI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.06% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
FXI iShares China Large-Cap ETF | -9.43% | 28.95% | 28.98% | -12.42% | -20.66% | -20.06% | 8.92% | 14.90% | -13.28% | 36.26% |
Correlation
The correlation between LQD and FXI is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.14 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.12 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2004 | 0.03 |
Over the past year, LQD and FXI have become more correlated (0.24) than their long-term average of 0.03, meaning their price movements have been converging.
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Return for Risk
LQD vs. FXI — Risk / Return Rank
LQD
FXI
LQD vs. FXI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and iShares China Large-Cap ETF (FXI). 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.
| LQD | FXI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.23 | ||
| Sortino ratioReturn per unit of downside risk | +1.65 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 0.99 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 1.72 | -0.18 | +1.90 |
| Martin ratioReturn relative to average drawdown | 4.88 | -0.38 | +5.27 |
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
| LQD | FXI | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.08 | -0.14 | +1.23 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.03 | -0.11 | +0.07 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.28 | 0.10 | +0.18 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.54 | 0.16 | +0.37 |
Drawdowns
LQD vs. FXI - Drawdown Comparison
The maximum LQD drawdown since its inception was -24.95%, smaller than the maximum FXI drawdown of -72.68%. Use the drawdown chart below to compare losses from any high point for LQD and FXI.
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Drawdown Indicators
| LQD | FXI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.95% | -72.68% | +47.73% |
Max Drawdown (1Y)Largest decline over 1 year | -3.34% | -16.03% | +12.69% |
Max Drawdown (3Y)Largest decline over 3 years | -8.43% | -28.72% | +20.29% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -54.94% | +29.99% |
Max Drawdown (10Y)Largest decline over 10 years | -24.95% | -60.81% | +35.86% |
Current DrawdownCurrent decline from peak | -4.21% | -28.68% | +24.47% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -31.22% | +27.23% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.18% | 7.41% | -6.23% |
Volatility
LQD vs. FXI - Volatility Comparison
The current volatility for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is 1.62%, while iShares China Large-Cap ETF (FXI) has a volatility of 6.70%. This indicates that LQD experiences smaller price fluctuations and is considered to be less risky than FXI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LQD | FXI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.62% | 6.70% | -5.08% |
Volatility (6M)Calculated over the trailing 6-month period | 3.94% | 14.46% | -10.52% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.32% | 19.95% | -14.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 31.68% | -23.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.68% | 27.67% | -18.99% |
LQD vs. FXI - Expense Ratio Comparison
LQD has a 0.15% expense ratio, which is lower than FXI's 0.74% expense ratio.
Dividends
LQD vs. FXI - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.59%, more than FXI's 2.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXI iShares China Large-Cap ETF | 2.67% | 2.42% | 1.76% | 3.17% | 2.61% | 1.60% | 2.19% | 2.74% | 2.69% | 2.31% | 2.69% | 2.90% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.59% | 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 FXI have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FXI has higher volatility (6.70%) compared to LQD (1.62%). In terms of maximum drawdown, LQD dropped -24.95% vs FXI's -72.68%.
On 10-year performance, FXI leads with 2.76% vs 2.41% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, LQD has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FXI has performed better with a 2.76% return vs 2.41%. 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 0.74% for FXI.
LQD has the higher dividend yield at 4.59%, compared with 2.67% for FXI.
LQD is categorized as Corporate Bonds, while FXI is China Equities. LQD tracks iBoxx $ Liquid Investment Grade Index, while FXI tracks FTSE China 50 Index. Their fees differ too: 0.15% for LQD and 0.74% for FXI.
LQD currently has the higher Sharpe Ratio (1.08 vs -0.14), 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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