LQD vs. SHV
LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and SHV (iShares 0-1 Year Treasury Bond ETF) are both exchange-traded funds - LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index, while SHV is a Government Bonds fund tracking the ICE Short US Treasury Securities Index. Both are passively managed. Over the past 10 years, LQD returned 2.52%/yr vs 2.23%/yr for SHV. At a 0.11 correlation, their price movements are largely independent. Both charge a 0.15% expense ratio.
Performance
LQD vs. SHV - Performance Comparison
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Returns By Period
In the year-to-date period, LQD achieves a 0.46% return, which is significantly lower than SHV's 1.42% return. Over the past 10 years, LQD has outperformed SHV with an annualized return of 2.52%, while SHV has yielded a comparatively lower 2.23% annualized 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%
SHV
- 1D
- 0.00%
- 1M
- 0.27%
- YTD
- 1.42%
- 6M
- 1.75%
- 1Y
- 3.90%
- 3Y*
- 4.64%
- 5Y*
- 3.31%
- 10Y*
- 2.23%
LQD vs. SHV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.46% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
SHV iShares 0-1 Year Treasury Bond ETF | 1.42% | 4.21% | 5.12% | 5.04% | 0.94% | -0.10% | 0.81% | 2.36% | 1.72% | 0.67% |
Correlation
The correlation between LQD and SHV is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.11 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.19 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.24 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.19 |
Correlation (All Time) Calculated using the full available price history since Jan 12, 2007 | 0.11 |
The correlation between LQD and SHV shifts across timeframes, from 0.11 (all time) to 0.24 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
LQD vs. SHV — Risk / Return Rank
LQD
SHV
LQD vs. SHV - 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 0-1 Year 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.
| LQD | SHV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -18.35 | ||
| Sortino ratioReturn per unit of downside risk | -147.87 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 53.77 | -52.57 |
| Calmar ratioReturn relative to maximum drawdown | 1.83 | 431.38 | -429.55 |
| Martin ratioReturn relative to average drawdown | 5.23 | 2,419.80 | -2,414.57 |
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 | SHV | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.14 | 19.49 | -18.35 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.01 | 11.56 | -11.56 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.29 | 8.09 | -7.79 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.54 | 4.50 | -3.96 |
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 -0.45%. Use the drawdown chart below to compare losses from any high point for LQD and SHV.
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Drawdown Indicators
| LQD | SHV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.95% | -0.45% | -24.50% |
Max Drawdown (1Y)Largest decline over 1 year | -3.34% | -0.01% | -3.33% |
Max Drawdown (3Y)Largest decline over 3 years | -8.43% | -0.03% | -8.40% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -0.40% | -24.55% |
Max Drawdown (10Y)Largest decline over 10 years | -24.95% | -0.45% | -24.50% |
Current DrawdownCurrent decline from peak | -3.72% | 0.00% | -3.72% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -0.03% | -3.96% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.17% | 0.00% | +1.17% |
Volatility
LQD vs. SHV - Volatility Comparison
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a higher volatility of 1.65% compared to iShares 0-1 Year Treasury Bond ETF (SHV) at 0.05%. 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.
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Volatility by Period
| LQD | SHV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.65% | 0.05% | +1.60% |
Volatility (6M)Calculated over the trailing 6-month period | 3.90% | 0.12% | +3.78% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.36% | 0.20% | +5.16% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 0.29% | +8.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.68% | 0.28% | +8.40% |
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%.
Dividends
LQD vs. SHV - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.57%, more than SHV's 3.83% 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% |
SHV iShares 0-1 Year Treasury Bond ETF | 3.83% | 4.09% | 5.02% | 4.73% | 1.39% | 0.00% | 0.74% | 2.19% | 1.66% | 0.72% | 0.34% | 0.03% |
Frequently Asked Questions
LQD and SHV have a correlation of 0.11, 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 SHV (0.05%). In terms of maximum drawdown, LQD dropped -24.95% vs SHV's -0.45%.
On 10-year performance, LQD leads with 2.52% vs 2.23% for SHV. Both ETFs have the same 0.15% expense ratio. On volatility, SHV has been the lower-risk option at 0.05%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, LQD has performed better with a 2.52% return vs 2.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LQD and SHV have the same expense ratio: 0.15% per year.
LQD has the higher dividend yield at 4.57%, compared with 3.83% for SHV.
LQD is categorized as Corporate Bonds, while SHV is Government Bonds. LQD tracks iBoxx $ Liquid Investment Grade Index, while SHV tracks ICE Short US Treasury Securities Index.
SHV currently has the higher Sharpe Ratio (19.49 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.
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