LQD vs. LQDI
LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and LQDI (iShares Inflation Hedged Corporate Bond ETF) are both exchange-traded funds - LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index, while LQDI is a Inflation-Protected Bonds fund actively managed by iShares. LQD is passively managed, while LQDI is actively managed. Over the past 5 years, LQD returned -0.04%/yr vs 1.93%/yr for LQDI. A 0.71 correlation means they provide meaningful diversification when combined. LQD charges 0.15%/yr vs 0.18%/yr for LQDI.
Performance
LQD vs. LQDI - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, LQD achieves a 0.46% return, which is significantly lower than LQDI's 1.72% return.
LQD
- 1D
- -0.28%
- 1M
- 0.72%
- YTD
- 0.46%
- 6M
- -0.03%
- 1Y
- 6.08%
- 3Y*
- 4.95%
- 5Y*
- -0.04%
- 10Y*
- 2.52%
LQDI
- 1D
- -0.39%
- 1M
- 0.66%
- YTD
- 1.72%
- 6M
- 1.56%
- 1Y
- 7.30%
- 3Y*
- 5.84%
- 5Y*
- 1.93%
- 10Y*
- —
LQD vs. LQDI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.46% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | 0.51% |
LQDI iShares Inflation Hedged Corporate Bond ETF | 1.72% | 8.84% | 1.48% | 8.85% | -15.33% | 7.53% | 11.82% | 15.83% | -2.07% |
Correlation
The correlation between LQD and LQDI is 0.74, 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 | 0.74 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.82 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.81 |
Correlation (All Time) Calculated using the full available price history since May 11, 2018 | 0.71 |
The correlation between LQD and LQDI shifts across timeframes, from 0.71 (all time) to 0.82 (3 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
LQD vs. LQDI — Risk / Return Rank
LQD
LQDI
LQD vs. LQDI - 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 Inflation Hedged Corporate Bond ETF (LQDI). 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 | LQDI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.34 | ||
| Sortino ratioReturn per unit of downside risk | -0.48 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.26 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.83 | 2.54 | -0.71 |
| Martin ratioReturn relative to average drawdown | 5.23 | 7.71 | -2.48 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| LQD | LQDI | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.14 | 1.47 | -0.34 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.01 | 0.24 | -0.24 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.29 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.54 | 0.40 | +0.13 |
Drawdowns
LQD vs. LQDI - Drawdown Comparison
The maximum LQD drawdown since its inception was -24.95%, smaller than the maximum LQDI drawdown of -28.99%. Use the drawdown chart below to compare losses from any high point for LQD and LQDI.
Loading charts...
Drawdown Indicators
| LQD | LQDI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.95% | -28.99% | +4.04% |
Max Drawdown (1Y)Largest decline over 1 year | -3.34% | -2.88% | -0.46% |
Max Drawdown (3Y)Largest decline over 3 years | -8.43% | -6.27% | -2.16% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -20.67% | -4.28% |
Max Drawdown (10Y)Largest decline over 10 years | -24.95% | — | — |
Current DrawdownCurrent decline from peak | -3.72% | -0.39% | -3.33% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -5.25% | +1.26% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.17% | 0.95% | +0.22% |
Volatility
LQD vs. LQDI - Volatility Comparison
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a higher volatility of 1.65% compared to iShares Inflation Hedged Corporate Bond ETF (LQDI) at 1.20%. This indicates that LQD's price experiences larger fluctuations and is considered to be riskier than LQDI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| LQD | LQDI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.65% | 1.20% | +0.45% |
Volatility (6M)Calculated over the trailing 6-month period | 3.90% | 3.44% | +0.46% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.36% | 4.97% | +0.39% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 8.18% | +0.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.68% | 10.84% | -2.16% |
LQD vs. LQDI - Expense Ratio Comparison
LQD has a 0.15% expense ratio, which is lower than LQDI'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. LQDI - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.57%, which matches LQDI's 4.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.57% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
LQDI iShares Inflation Hedged Corporate Bond ETF | 4.58% | 4.46% | 4.65% | 3.98% | 3.27% | 2.42% | 2.34% | 3.26% | 2.53% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
LQD and LQDI have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQD has higher volatility (1.65%) compared to LQDI (1.20%). In terms of maximum drawdown, LQD dropped -24.95% vs LQDI's -28.99%.
On 5-year performance, LQDI leads with 1.93% vs -0.04% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, LQDI has been the lower-risk option at 1.20%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, LQDI has performed better with a 1.93% return vs -0.04%. 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 LQDI.
LQDI has the higher dividend yield at 4.58%, compared with 4.57% for LQD.
LQD is categorized as Corporate Bonds, while LQDI is Inflation-Protected Bonds. Their fees differ too: 0.15% for LQD and 0.18% for LQDI.
LQDI currently has the higher Sharpe Ratio (1.47 vs 1.14), 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.
Find the right allocation for LQD and LQDI
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer