LQD vs. VEU
LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both exchange-traded funds - LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index, while VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, LQD returned 2.53%/yr vs 10.23%/yr for VEU. At a 0.10 correlation, their price movements are largely independent. LQD charges 0.15%/yr vs 0.04%/yr for VEU.
Performance
LQD vs. VEU - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, LQD achieves a 0.88% return, which is significantly lower than VEU's 13.63% return. Over the past 10 years, LQD has underperformed VEU with an annualized return of 2.53%, while VEU has yielded a comparatively higher 10.23% annualized return.
LQD
- 1D
- 0.85%
- 1M
- 0.86%
- YTD
- 0.88%
- 6M
- 0.69%
- 1Y
- 5.82%
- 3Y*
- 5.17%
- 5Y*
- -0.20%
- 10Y*
- 2.53%
VEU
- 1D
- 3.33%
- 1M
- 1.64%
- YTD
- 13.63%
- 6M
- 14.67%
- 1Y
- 29.07%
- 3Y*
- 18.92%
- 5Y*
- 8.48%
- 10Y*
- 10.23%
LQD vs. VEU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.88% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
VEU Vanguard FTSE All-World ex-US ETF | 13.63% | 32.35% | 5.56% | 15.84% | -15.58% | 8.27% | 11.10% | 21.83% | -14.18% | 27.40% |
Correlation
The correlation between LQD and VEU is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.49 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.42 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.35 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.26 |
Correlation (All Time) Calculated using the full available price history since Mar 8, 2007 | 0.10 |
Over the past year, LQD and VEU have become more correlated (0.49) than their long-term average of 0.10, meaning their price movements have been converging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
LQD vs. VEU — Risk / Return Rank
LQD
VEU
LQD vs. VEU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and Vanguard FTSE All-World ex-US ETF (VEU). 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 | VEU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.72 | ||
| Sortino ratioReturn per unit of downside risk | -0.90 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.33 | -0.15 |
| Calmar ratioReturn relative to maximum drawdown | 1.75 | 2.56 | -0.81 |
| Martin ratioReturn relative to average drawdown | 4.92 | 9.76 | -4.84 |
Loading charts...
Drawdowns
LQD vs. VEU - Drawdown Comparison
The maximum LQD drawdown since its inception was -24.95%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for LQD and VEU.
Loading charts...
Drawdown Indicators
| LQD | VEU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.95% | -61.52% | +36.57% |
Max Drawdown (1Y)Largest decline over 1 year | -3.34% | -11.43% | +8.09% |
Max Drawdown (3Y)Largest decline over 3 years | -8.43% | -13.69% | +5.26% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -29.31% | +4.36% |
Max Drawdown (10Y)Largest decline over 10 years | -24.95% | -34.98% | +10.03% |
Current DrawdownCurrent decline from peak | -3.31% | -1.81% | -1.50% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -13.12% | +9.13% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.19% | 2.99% | -1.80% |
Volatility
LQD vs. VEU - Volatility Comparison
The current volatility for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is 1.77%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 6.83%. This indicates that LQD experiences smaller price fluctuations and is considered to be less risky than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| LQD | VEU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.77% | 6.83% | -5.06% |
Volatility (6M)Calculated over the trailing 6-month period | 4.04% | 14.09% | -10.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.38% | 16.17% | -10.79% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 16.24% | -7.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.69% | 17.26% | -8.57% |
LQD vs. VEU - Expense Ratio Comparison
LQD has a 0.15% expense ratio, which is higher than VEU's 0.04% 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. VEU - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.55%, more than VEU's 2.63% 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% |
VEU Vanguard FTSE All-World ex-US ETF | 2.63% | 3.09% | 3.24% | 3.32% | 3.12% | 3.08% | 2.00% | 3.10% | 3.27% | 2.66% | 2.96% | 2.95% |
Frequently Asked Questions
LQD and VEU have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VEU has higher volatility (6.83%) compared to LQD (1.77%). In terms of maximum drawdown, LQD dropped -24.95% vs VEU's -61.52%.
On 10-year performance, VEU leads with 10.23% vs 2.53% for LQD. On fees, VEU is cheaper at 0.04% per year. On volatility, LQD has been the lower-risk option at 1.77%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VEU has performed better with a 10.23% return vs 2.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VEU is cheaper with a 0.04% expense ratio, compared with 0.15% for LQD.
LQD has the higher dividend yield at 4.55%, compared with 2.63% for VEU.
LQD is categorized as Corporate Bonds, while VEU is Foreign Large Cap Equities. LQD tracks iBoxx $ Liquid Investment Grade Index, while VEU tracks FTSE All-World ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for LQD and 0.04% for VEU.
VEU currently has the higher Sharpe Ratio (1.81 vs 1.09), 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.
Find the right allocation for LQD and VEU
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer