LQD vs. MCHI
LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and MCHI (iShares MSCI China ETF) are both exchange-traded funds - LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index, while MCHI is a China Equities fund tracking the MSCI China Index. Both are passively managed. Over the past 10 years, LQD returned 2.54%/yr vs 4.76%/yr for MCHI. At a 0.06 correlation, their price movements are largely independent. LQD charges 0.15%/yr vs 0.59%/yr for MCHI.
Performance
LQD vs. MCHI - Performance Comparison
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Returns By Period
In the year-to-date period, LQD achieves a 0.82% return, which is significantly higher than MCHI's -8.72% return. Over the past 10 years, LQD has underperformed MCHI with an annualized return of 2.54%, while MCHI has yielded a comparatively higher 4.76% annualized return.
LQD
- 1D
- -0.06%
- 1M
- 0.80%
- YTD
- 0.82%
- 6M
- 1.24%
- 1Y
- 5.80%
- 3Y*
- 5.30%
- 5Y*
- -0.21%
- 10Y*
- 2.54%
MCHI
- 1D
- 0.90%
- 1M
- -5.63%
- YTD
- -8.72%
- 6M
- -9.79%
- 1Y
- 2.33%
- 3Y*
- 8.42%
- 5Y*
- -5.82%
- 10Y*
- 4.76%
LQD vs. MCHI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.82% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
MCHI iShares MSCI China ETF | -8.72% | 31.04% | 17.73% | -11.94% | -23.01% | -21.74% | 27.78% | 23.72% | -19.79% | 54.67% |
Correlation
The correlation between LQD and MCHI is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.22 |
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 Mar 31, 2011 | 0.06 |
The correlation between LQD and MCHI shifts across timeframes, from 0.06 (all time) to 0.22 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
LQD vs. MCHI — Risk / Return Rank
LQD
MCHI
LQD vs. MCHI - 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 MSCI China ETF (MCHI). 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 | MCHI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.95 | ||
| Sortino ratioReturn per unit of downside risk | +1.26 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.02 | +0.15 |
| Calmar ratioReturn relative to maximum drawdown | 1.55 | 0.03 | +1.53 |
| Martin ratioReturn relative to average drawdown | 4.37 | 0.05 | +4.32 |
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Drawdowns
LQD vs. MCHI - Drawdown Comparison
The maximum LQD drawdown since its inception was -24.95%, smaller than the maximum MCHI drawdown of -62.95%. Use the drawdown chart below to compare losses from any high point for LQD and MCHI.
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Drawdown Indicators
| LQD | MCHI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.95% | -62.95% | +38.00% |
Max Drawdown (1Y)Largest decline over 1 year | -3.34% | -18.51% | +15.17% |
Max Drawdown (3Y)Largest decline over 3 years | -8.43% | -25.85% | +17.42% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -56.98% | +32.03% |
Max Drawdown (10Y)Largest decline over 10 years | -24.95% | -62.95% | +38.00% |
Current DrawdownCurrent decline from peak | -3.37% | -37.76% | +34.39% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -24.54% | +20.55% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.19% | 8.81% | -7.62% |
Volatility
LQD vs. MCHI - Volatility Comparison
The current volatility for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is 1.78%, while iShares MSCI China ETF (MCHI) has a volatility of 6.46%. This indicates that LQD experiences smaller price fluctuations and is considered to be less risky than MCHI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LQD | MCHI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.78% | 6.46% | -4.68% |
Volatility (6M)Calculated over the trailing 6-month period | 4.02% | 14.62% | -10.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.37% | 20.23% | -14.86% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 30.72% | -22.07% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.69% | 27.38% | -18.69% |
LQD vs. MCHI - Expense Ratio Comparison
LQD has a 0.15% expense ratio, which is lower than MCHI's 0.59% expense ratio.
Dividends
LQD vs. MCHI - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.55%, more than MCHI's 2.32% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
MCHI iShares MSCI China ETF | 2.32% | 2.12% | 2.31% | 2.66% | 1.78% | 1.04% | 1.04% | 1.45% | 1.60% | 1.56% | 1.66% | 2.76% |
Frequently Asked Questions
LQD and MCHI have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MCHI has higher volatility (6.46%) compared to LQD (1.78%). In terms of maximum drawdown, LQD dropped -24.95% vs MCHI's -62.95%.
On 10-year performance, MCHI leads with 4.76% vs 2.54% 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 10-year period, MCHI has performed better with a 4.76% return vs 2.54%. 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 0.59% for MCHI.
LQD has the higher dividend yield at 4.55%, compared with 2.32% for MCHI.
LQD is categorized as Corporate Bonds, while MCHI is China Equities. LQD tracks iBoxx $ Liquid Investment Grade Index, while MCHI tracks MSCI China Index. Their fees differ too: 0.15% for LQD and 0.59% for MCHI.
LQD currently has the higher Sharpe Ratio (0.97 vs 0.02), 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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