LQD vs. IGSB
LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and IGSB (iShares 1-5 Year Investment Grade Corporate Bond ETF) are both Corporate Bonds funds from iShares - LQD tracks the iBoxx $ Liquid Investment Grade Index while IGSB tracks the ICE BofA 1-5 Year US Corporate Index. Both are passively managed. Over the past 10 years, LQD returned 2.11%/yr vs 2.70%/yr for IGSB. Their 0.59 correlation means they have sometimes moved together and sometimes differently. LQD charges 0.15%/yr vs 0.04%/yr for IGSB.
Performance
LQD vs. IGSB - Performance Comparison
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Returns By Period
In the year-to-date period, LQD achieves a -1.39% return, which is significantly lower than IGSB's 0.91% return. Over the past 10 years, LQD has underperformed IGSB with an annualized return of 2.11%, while IGSB has yielded a comparatively higher 2.70% annualized return.
LQD
- 1D
- -0.15%
- 1M
- -2.20%
- 6M
- -1.73%
- YTD
- -1.39%
- 1Y
- 0.96%
- 3Y*
- 4.37%
- 5Y*
- -1.03%
- 10Y*
- 2.11%
- ALL TIME*
- 4.35%
IGSB
- 1D
- -0.04%
- 1M
- -0.17%
- 6M
- 0.47%
- YTD
- 0.91%
- 1Y
- 3.16%
- 3Y*
- 5.60%
- 5Y*
- 2.41%
- 10Y*
- 2.70%
- ALL TIME*
- 2.82%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $137.50M | $132.28M | $161.41M | |
| $3.33B | $3.16B | $3.02B |
LQD vs. IGSB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -1.39% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF | 0.91% | 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 0.85, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.85 |
Correlation (3Y) Balances recent behavior with more history. | 0.87 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.86 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.79 |
Correlation (All Time) Calculated using the full available price history since Jan 11, 2007 | 0.59 |
Over the past year, LQD and IGSB have become more correlated (0.85) than their long-term average of 0.59, meaning their price movements have been converging.
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Return for Risk
LQD vs. IGSB — Risk / Return Rank
LQD
IGSB
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 1-5 Year Investment Grade 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.
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 | IGSB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.56 | ||
| Sortino ratioReturn per unit of downside risk | -2.36 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.37 | -0.31 |
| Calmar ratioReturn relative to maximum drawdown | 0.56 | 2.56 | -2.00 |
| Martin ratioReturn relative to average drawdown | 1.37 | 10.07 | -8.70 |
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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
| LQD | IGSB | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 | -6.73% | -1.46% | -5.27% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -9.41% | -15.54% |
Max Drawdown (10Y)Largest decline over 10 years | -24.95% | -13.38% | -11.57% |
Current DrawdownCurrent decline from peak | -5.49% | -0.23% | -5.26% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -0.85% | -3.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.36% | 0.37% | +0.99% |
Volatility
LQD vs. IGSB - Volatility Comparison
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a higher volatility of 1.37% compared to iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) at 0.51%. 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
| LQD | IGSB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.37% | 0.51% | +0.86% |
Volatility (6M)Calculated over the trailing 6-month period | 4.08% | 1.57% | +2.51% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.28% | 1.95% | +3.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.64% | 2.95% | +5.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.69% | 3.47% | +5.22% |
LQD vs. IGSB - Expense Ratio Comparison
LQD has a 0.15% expense ratio, which is higher than IGSB's 0.04% 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 4.65%, more than IGSB's 4.60% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF | 4.23% | 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 | 4.23% | 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 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQD has higher volatility (1.37%) compared to IGSB (0.51%). In terms of maximum drawdown, LQD dropped -24.95% vs IGSB's -13.38%.
On 10-year performance, IGSB leads with 2.70% vs 2.11% for LQD. On fees, IGSB is cheaper at 0.04% per year. On volatility, IGSB has been the lower-risk option at 0.51%. 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 2.70% return vs 2.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IGSB is cheaper with a 0.04% expense ratio, compared with 0.15% for LQD.
LQD and IGSB have nearly identical dividend yields, around 4.23%.
LQD tracks iBoxx $ Liquid Investment Grade Index, while IGSB tracks ICE BofA 1-5 Year US Corporate Index. Their fees differ too: 0.15% for LQD and 0.04% for IGSB.
IGSB currently has the higher Sharpe Ratio (1.91 vs 0.35), 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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