LQD vs. SCHX
LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and SCHX (Schwab U.S. Large-Cap ETF) are both exchange-traded funds - LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index, while SCHX is a Large Cap Blend Equities fund tracking the Dow Jones U.S. Large-Cap Total Stock Market Index. Both are passively managed. Over the past 10 years, LQD returned 2.41%/yr vs 15.20%/yr for SCHX. At a 0.10 correlation, their price movements are largely independent. LQD charges 0.15%/yr vs 0.03%/yr for SCHX.
Performance
LQD vs. SCHX - 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 SCHX's 8.56% return. Over the past 10 years, LQD has underperformed SCHX with an annualized return of 2.41%, while SCHX has yielded a comparatively higher 15.20% annualized return.
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%
SCHX
- 1D
- 0.28%
- 1M
- 0.45%
- YTD
- 8.56%
- 6M
- 8.52%
- 1Y
- 24.19%
- 3Y*
- 21.40%
- 5Y*
- 12.87%
- 10Y*
- 15.20%
LQD vs. SCHX - 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% |
SCHX Schwab U.S. Large-Cap ETF | 8.56% | 17.46% | 24.88% | 26.84% | -19.41% | 26.81% | 20.81% | 31.22% | -4.66% | 21.95% |
Correlation
The correlation between LQD and SCHX is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.42 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.34 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.32 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.24 |
Correlation (All Time) Calculated using the full available price history since Nov 4, 2009 | 0.10 |
Over the past year, LQD and SCHX have become more correlated (0.42) than their long-term average of 0.10, meaning their price movements have been converging.
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Return for Risk
LQD vs. SCHX — Risk / Return Rank
LQD
SCHX
LQD vs. SCHX - 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. Large-Cap ETF (SCHX). 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 | SCHX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.90 | ||
| Sortino ratioReturn per unit of downside risk | -1.10 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.36 | -0.17 |
| Calmar ratioReturn relative to maximum drawdown | 1.72 | 2.69 | -0.97 |
| Martin ratioReturn relative to average drawdown | 4.88 | 12.15 | -7.27 |
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 | SCHX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.08 | 1.98 | -0.90 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.03 | 0.75 | -0.79 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.28 | 0.84 | -0.56 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.54 | 0.84 | -0.31 |
Drawdowns
LQD vs. SCHX - Drawdown Comparison
The maximum LQD drawdown since its inception was -24.95%, smaller than the maximum SCHX drawdown of -34.33%. Use the drawdown chart below to compare losses from any high point for LQD and SCHX.
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Drawdown Indicators
| LQD | SCHX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.95% | -34.33% | +9.38% |
Max Drawdown (1Y)Largest decline over 1 year | -3.34% | -9.02% | +5.68% |
Max Drawdown (3Y)Largest decline over 3 years | -8.43% | -19.04% | +10.61% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -25.41% | +0.46% |
Max Drawdown (10Y)Largest decline over 10 years | -24.95% | -34.33% | +9.38% |
Current DrawdownCurrent decline from peak | -4.21% | -2.64% | -1.57% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -3.97% | -0.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.18% | 2.00% | -0.82% |
Volatility
LQD vs. SCHX - Volatility Comparison
The current volatility for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is 1.62%, while Schwab U.S. Large-Cap ETF (SCHX) has a volatility of 3.84%. This indicates that LQD experiences smaller price fluctuations and is considered to be less risky than SCHX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LQD | SCHX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.62% | 3.84% | -2.22% |
Volatility (6M)Calculated over the trailing 6-month period | 3.94% | 9.44% | -5.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.32% | 12.27% | -6.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 17.16% | -8.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.68% | 18.17% | -9.49% |
LQD vs. SCHX - Expense Ratio Comparison
LQD has a 0.15% expense ratio, which is higher than SCHX'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. SCHX - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.59%, more than SCHX's 1.03% 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% |
SCHX Schwab U.S. Large-Cap ETF | 1.03% | 1.09% | 1.22% | 1.39% | 1.64% | 1.22% | 1.64% | 1.82% | 2.02% | 1.70% | 1.92% | 2.04% |
Frequently Asked Questions
LQD and SCHX have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHX has higher volatility (3.84%) compared to LQD (1.62%). In terms of maximum drawdown, LQD dropped -24.95% vs SCHX's -34.33%.
On 10-year performance, SCHX leads with 15.20% vs 2.41% for LQD. On fees, SCHX is cheaper at 0.03% per year. On volatility, LQD has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHX has performed better with a 15.20% return vs 2.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHX 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 1.03% for SCHX.
LQD is categorized as Corporate Bonds, while SCHX is Large Cap Blend Equities. LQD tracks iBoxx $ Liquid Investment Grade Index, while SCHX tracks Dow Jones U.S. Large-Cap Total Stock Market Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.15% for LQD and 0.03% for SCHX.
SCHX currently has the higher Sharpe Ratio (1.98 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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