LQD vs. SCHP
LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and SCHP (Schwab U.S. TIPS ETF) are both exchange-traded funds - LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index, while SCHP is a Inflation-Protected Bonds fund tracking the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). Both are passively managed. Over the past 10 years, LQD returned 2.41%/yr vs 2.53%/yr for SCHP. A 0.71 correlation means they provide meaningful diversification when combined. LQD charges 0.15%/yr vs 0.03%/yr for SCHP.
Performance
LQD vs. SCHP - Performance Comparison
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Returns By Period
In the year-to-date period, LQD achieves a -0.06% return, which is significantly lower than SCHP's 0.96% return. Both investments have delivered pretty close results over the past 10 years, with LQD having a 2.41% annualized return and SCHP not far ahead at 2.53%.
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%
SCHP
- 1D
- -0.19%
- 1M
- -0.89%
- YTD
- 0.96%
- 6M
- 0.95%
- 1Y
- 4.80%
- 3Y*
- 3.84%
- 5Y*
- 1.02%
- 10Y*
- 2.53%
LQD vs. SCHP - 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% |
SCHP Schwab U.S. TIPS ETF | 0.96% | 6.76% | 1.95% | 3.91% | -12.02% | 5.87% | 10.86% | 8.52% | -1.78% | 3.02% |
Correlation
The correlation between LQD and SCHP is 0.78, 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 | 0.78 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.85 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.77 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.73 |
Correlation (All Time) Calculated using the full available price history since Aug 5, 2010 | 0.71 |
The correlation between LQD and SCHP shifts across timeframes, from 0.71 (all time) to 0.85 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
LQD vs. SCHP — Risk / Return Rank
LQD
SCHP
LQD vs. SCHP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and Schwab U.S. TIPS ETF (SCHP). 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 | SCHP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.39 | ||
| Sortino ratioReturn per unit of downside risk | -0.64 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.26 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 1.72 | 2.50 | -0.77 |
| Martin ratioReturn relative to average drawdown | 4.88 | 7.59 | -2.70 |
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 | SCHP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.08 | 1.47 | -0.39 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.03 | 0.17 | -0.20 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.28 | 0.45 | -0.17 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.54 | 0.50 | +0.04 |
Drawdowns
LQD vs. SCHP - Drawdown Comparison
The maximum LQD drawdown since its inception was -24.95%, which is greater than SCHP's maximum drawdown of -14.26%. Use the drawdown chart below to compare losses from any high point for LQD and SCHP.
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Drawdown Indicators
| LQD | SCHP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.95% | -14.26% | -10.69% |
Max Drawdown (1Y)Largest decline over 1 year | -3.34% | -1.93% | -1.41% |
Max Drawdown (3Y)Largest decline over 3 years | -8.43% | -4.48% | -3.95% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -14.26% | -10.69% |
Max Drawdown (10Y)Largest decline over 10 years | -24.95% | -14.26% | -10.69% |
Current DrawdownCurrent decline from peak | -4.21% | -0.89% | -3.32% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -3.93% | -0.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.18% | 0.63% | +0.55% |
Volatility
LQD vs. SCHP - Volatility Comparison
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a higher volatility of 1.62% compared to Schwab U.S. TIPS ETF (SCHP) at 1.00%. This indicates that LQD's price experiences larger fluctuations and is considered to be riskier than SCHP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LQD | SCHP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.62% | 1.00% | +0.62% |
Volatility (6M)Calculated over the trailing 6-month period | 3.94% | 2.24% | +1.70% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.32% | 3.29% | +2.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 6.12% | +2.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.68% | 5.59% | +3.09% |
LQD vs. SCHP - Expense Ratio Comparison
LQD has a 0.15% expense ratio, which is higher than SCHP's 0.03% 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. SCHP - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.59%, more than SCHP's 4.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
SCHP Schwab U.S. TIPS ETF | 4.01% | 4.06% | 2.99% | 3.02% | 7.19% | 4.39% | 1.11% | 2.02% | 2.26% | 1.90% | 1.38% | 0.28% |
Frequently Asked Questions
LQD and SCHP have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQD has higher volatility (1.62%) compared to SCHP (1.00%). In terms of maximum drawdown, LQD dropped -24.95% vs SCHP's -14.26%.
On 10-year performance, SCHP leads with 2.53% vs 2.41% for LQD. On fees, SCHP is cheaper at 0.03% per year. On volatility, SCHP has been the lower-risk option at 1.00%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHP has performed better with a 2.53% return vs 2.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHP is cheaper with a 0.03% expense ratio, compared with 0.15% for LQD.
LQD has the higher dividend yield at 4.59%, compared with 4.01% for SCHP.
LQD is categorized as Corporate Bonds, while SCHP is Inflation-Protected Bonds. LQD tracks iBoxx $ Liquid Investment Grade Index, while SCHP tracks Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.15% for LQD and 0.03% for SCHP.
SCHP currently has the higher Sharpe Ratio (1.47 vs 1.08), 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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