LQD vs. SHV
Compare and contrast key facts about iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and iShares Short Treasury Bond ETF (SHV).
LQD and SHV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. LQD is a passively managed fund by iShares that tracks the performance of the iBoxx $ Liquid Investment Grade Index. It was launched on Jul 26, 2002. SHV is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Short Treasury Bond Index. It was launched on Jan 11, 2007. Both LQD and SHV are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: LQD or SHV.
Key characteristics
| LQD | SHV | |
|---|---|---|
| YTD Return | 1.49% | 4.52% |
| 1Y Return | 8.69% | 5.23% |
| 3Y Return (Ann) | -2.74% | 3.49% |
| 5Y Return (Ann) | 0.13% | 2.26% |
| 10Y Return (Ann) | 2.48% | 1.62% |
| Sharpe Ratio | 1.29 | 19.43 |
| Sortino Ratio | 1.89 | 132.12 |
| Omega Ratio | 1.22 | 52.69 |
| Calmar Ratio | 0.54 | 194.01 |
| Martin Ratio | 4.41 | 1,950.07 |
| Ulcer Index | 2.18% | 0.00% |
| Daily Std Dev | 7.42% | 0.27% |
| Max Drawdown | -24.95% | -0.46% |
| Current Drawdown | -10.62% | 0.00% |
Correlation
The correlation between LQD and SHV is 0.12, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
LQD vs. SHV - Performance Comparison
In the year-to-date period, LQD achieves a 1.49% return, which is significantly lower than SHV's 4.52% return. Over the past 10 years, LQD has outperformed SHV with an annualized return of 2.48%, while SHV has yielded a comparatively lower 1.62% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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LQD vs. SHV - Expense Ratio Comparison
Both LQD and SHV have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
LQD vs. SHV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and iShares Short Treasury Bond ETF (SHV). 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.
Dividends
LQD vs. SHV - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.41%, less than SHV's 5.15% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.41% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% | 3.39% | 3.83% |
SHV iShares Short Treasury Bond ETF | 5.15% | 4.73% | 1.39% | 0.00% | 0.74% | 2.19% | 1.66% | 0.72% | 0.34% | 0.03% | 0.00% | 0.00% |
Drawdowns
LQD vs. SHV - Drawdown Comparison
The maximum LQD drawdown since its inception was -24.95%, which is greater than SHV's maximum drawdown of -0.46%. Use the drawdown chart below to compare losses from any high point for LQD and SHV. For additional features, visit the drawdowns tool.
Volatility
LQD vs. SHV - Volatility Comparison
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a higher volatility of 2.49% compared to iShares Short Treasury Bond ETF (SHV) at 0.08%. This indicates that LQD's price experiences larger fluctuations and is considered to be riskier than SHV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.