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LQD vs. IGSB
Performance
Return for Risk
Drawdowns
Volatility
Dividends

LQD vs. IGSB

Last updated Jun 3, 2026

LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and IGSB (iShares Short-Term Corporate Bond ETF) are both Corporate Bonds funds from iShares - LQD tracks the iBoxx $ Liquid Investment Grade Index while IGSB tracks the ICE BofAML 1-5 Year US Corporate Index. Both are passively managed. Over the past 10 years, LQD returned 2.55%/yr vs 2.74%/yr for IGSB. A 0.59 correlation means they provide meaningful diversification when combined. LQD charges 0.15%/yr vs 0.06%/yr for IGSB.

Performance

LQD vs. IGSB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and iShares Short-Term Corporate Bond ETF (IGSB). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

The year-to-date returns for both investments are quite close, with LQD having a 0.74% return and IGSB slightly higher at 0.77%. Over the past 10 years, LQD has underperformed IGSB with an annualized return of 2.55%, while IGSB has yielded a comparatively higher 2.74% annualized return.

LQD

1D
-0.01%
1M
0.67%
YTD
0.74%
6M
0.47%
1Y
6.42%
3Y*
5.05%
5Y*
0.15%
10Y*
2.55%

IGSB

1D
-0.02%
1M
0.21%
YTD
0.77%
6M
1.18%
1Y
4.76%
3Y*
5.68%
5Y*
2.46%
10Y*
2.74%
*Multi-year figures are annualized to reflect compound growth (CAGR)

LQD vs. IGSB - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
LQD
iShares iBoxx $ Investment Grade Corporate Bond ETF		0.74%7.90%0.86%9.40%-17.92%-1.84%10.97%17.37%-3.79%7.06%
IGSB
iShares Short-Term Corporate Bond ETF		0.77%6.96%4.97%6.40%-5.63%-0.56%5.37%7.11%1.25%1.27%

Correlation

The correlation between LQD and IGSB is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.86

Correlation (3Y)
Calculated over the trailing 3-year period

0.87

Correlation (5Y)
Calculated over the trailing 5-year period

0.85

Correlation (10Y)
Calculated over the trailing 10-year period

0.78

Correlation (All Time)
Calculated using the full available price history since Jan 12, 2007

0.59

Over the past year, LQD and IGSB have become more correlated (0.86) than their long-term average of 0.59, meaning their price movements have been converging.

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iShares iBoxx $ Investment Grade Corporate Bond ETF

iShares Short-Term Corporate Bond ETF

Often compared with LQD:
LQD vs. HYGLQD vs. VCITLQD vs. IEFLQD vs. TLTLQD vs. LQDWLQD vs. VCLTLQD vs. LQDH
Often compared with IGSB:
IGSB vs. VCSHIGSB vs. SPSBIGSB vs. IGIBIGSB vs. SLQDIGSB vs. FLDRIGSB vs. AGGIGSB vs. VFIDX

Return for Risk

LQD vs. IGSB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
LQD
LQD Risk / Return Rank: 3333
Overall Rank
LQD Sharpe Ratio Rank: 3333
Sharpe Ratio Rank
LQD Sortino Ratio Rank: 3333
Sortino Ratio Rank
LQD Omega Ratio Rank: 3131
Omega Ratio Rank
LQD Calmar Ratio Rank: 3737
Calmar Ratio Rank
LQD Martin Ratio Rank: 3333
Martin Ratio Rank
IGSB
IGSB Risk / Return Rank: 7575
Overall Rank
IGSB Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
IGSB Sortino Ratio Rank: 8686
Sortino Ratio Rank
IGSB Omega Ratio Rank: 8282
Omega Ratio Rank
IGSB Calmar Ratio Rank: 6464
Calmar Ratio Rank
IGSB Martin Ratio Rank: 7070
Martin Ratio Rank
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. IGSB - 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 Short-Term Corporate Bond ETF (IGSB). 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.

LQDIGSBDifference

Sharpe ratio

Return per unit of total volatility

1.20

2.48

-1.28

Sortino ratio

Return per unit of downside risk

1.77

3.88

-2.11

Omega ratio

Gain probability vs. loss probability

1.21

1.50

-0.29

Calmar ratio

Return relative to maximum drawdown

1.83

3.23

-1.40

Martin ratio

Return relative to average drawdown

5.26

13.18

-7.91

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LQD vs. IGSB - Sharpe Ratio Comparison

The current LQD Sharpe Ratio is 1.20, which is lower than the IGSB Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of LQD and IGSB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

LQDIGSBDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.20

2.48

-1.28

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.02

0.84

-0.82

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.29

0.80

-0.50

Sharpe Ratio (All Time)

Calculated using the full available price history

0.54

0.70

-0.16

Drawdowns

LQD vs. IGSB - Drawdown Comparison

The maximum LQD drawdown since its inception was -24.95%, which is greater than IGSB's maximum drawdown of -13.38%. Use the drawdown chart below to compare losses from any high point for LQD and IGSB.

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Drawdown Indicators

LQDIGSBDifference

Max Drawdown

Largest peak-to-trough decline

-24.95%

-13.38%

-11.57%

Max Drawdown (1Y)

Largest decline over 1 year

-3.34%

-1.46%

-1.88%

Max Drawdown (3Y)

Largest decline over 3 years

-8.43%

-1.46%

-6.97%

Max Drawdown (5Y)

Largest decline over 5 years

-24.95%

-9.46%

-15.49%

Max Drawdown (10Y)

Largest decline over 10 years

-24.95%

-13.38%

-11.57%

Current Drawdown

Current decline from peak

-3.45%

-0.26%

-3.19%

Average Drawdown

Average peak-to-trough decline

-3.99%

-0.85%

-3.14%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.16%

0.36%

+0.80%

Volatility

LQD vs. IGSB - Volatility Comparison

iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a higher volatility of 1.66% compared to iShares Short-Term Corporate Bond ETF (IGSB) at 0.58%. This indicates that LQD's price experiences larger fluctuations and is considered to be riskier than IGSB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

LQDIGSBDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.66%

0.58%

+1.08%

Volatility (6M)

Calculated over the trailing 6-month period

3.92%

1.41%

+2.51%

Volatility (1Y)

Calculated over the trailing 1-year period

5.36%

1.92%

+3.44%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

8.65%

2.93%

+5.72%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

8.68%

3.46%

+5.22%

LQD vs. IGSB - Expense Ratio Comparison

LQD has a 0.15% expense ratio, which is higher than IGSB's 0.06% 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%.

Dividends

LQD vs. IGSB - Dividend Comparison

LQD's dividend yield for the trailing twelve months is around 4.56%, which matches IGSB's 4.57% yield.

PositionTTM20252024202320222021202020192018201720162015
IGSB
iShares Short-Term Corporate Bond ETF		4.57%4.44%4.02%3.26%2.07%1.82%2.36%3.06%2.46%1.65%1.45%1.18%
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

LQD and IGSB have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

LQD has higher volatility (1.66%) compared to IGSB (0.58%). In terms of maximum drawdown, LQD dropped -24.95% vs IGSB's -13.38%.

On 10-year performance, IGSB leads with 2.74% vs 2.55% for LQD. On fees, IGSB is cheaper at 0.06% per year. On volatility, IGSB has been the lower-risk option at 0.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IGSB has performed better with a 2.74% return vs 2.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IGSB is cheaper with a 0.06% expense ratio, compared with 0.15% for LQD.

LQD and IGSB have nearly identical dividend yields, around 4.56%.

LQD tracks iBoxx $ Liquid Investment Grade Index, while IGSB tracks ICE BofAML 1-5 Year US Corporate Index. Their fees differ too: 0.15% for LQD and 0.06% for IGSB.

IGSB currently has the higher Sharpe Ratio (2.48 vs 1.20), 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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