LQD vs. VRIG
LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and VRIG (Invesco Variable Rate Investment Grade ETF) are both exchange-traded funds - LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index, while VRIG is a Ultrashort Bond fund actively managed by Invesco. LQD is passively managed, while VRIG is actively managed. Over the past 5 years, LQD returned -0.21%/yr vs 4.44%/yr for VRIG. At a 0.05 correlation, their price movements are largely independent. LQD charges 0.15%/yr vs 0.30%/yr for VRIG.
Performance
LQD vs. VRIG - Performance Comparison
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Returns By Period
In the year-to-date period, LQD achieves a 0.82% return, which is significantly lower than VRIG's 1.91% return.
LQD
- 1D
- -0.06%
- 1M
- 0.74%
- YTD
- 0.82%
- 6M
- 1.24%
- 1Y
- 5.16%
- 3Y*
- 5.30%
- 5Y*
- -0.21%
- 10Y*
- 2.54%
VRIG
- 1D
- 0.04%
- 1M
- 0.31%
- YTD
- 1.91%
- 6M
- 2.18%
- 1Y
- 4.93%
- 3Y*
- 5.94%
- 5Y*
- 4.44%
- 10Y*
- —
LQD vs. VRIG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.82% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
VRIG Invesco Variable Rate Investment Grade ETF | 1.91% | 5.05% | 6.81% | 7.37% | 0.99% | 1.06% | 1.76% | 4.57% | 0.51% | 3.20% |
Correlation
The correlation between LQD and VRIG is 0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.02 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.07 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since Sep 22, 2016 | 0.05 |
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Return for Risk
LQD vs. VRIG — Risk / Return Rank
LQD
VRIG
LQD vs. VRIG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and Invesco Variable Rate Investment Grade ETF (VRIG). 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 | VRIG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -9.03 | ||
| Sortino ratioReturn per unit of downside risk | -22.74 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 5.25 | -4.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.55 | 61.96 | -60.41 |
| Martin ratioReturn relative to average drawdown | 4.37 | 315.58 | -311.21 |
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Drawdowns
LQD vs. VRIG - Drawdown Comparison
The maximum LQD drawdown since its inception was -24.95%, which is greater than VRIG's maximum drawdown of -13.04%. Use the drawdown chart below to compare losses from any high point for LQD and VRIG.
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Drawdown Indicators
| LQD | VRIG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.95% | -13.04% | -11.91% |
Max Drawdown (1Y)Largest decline over 1 year | -3.34% | -0.08% | -3.26% |
Max Drawdown (3Y)Largest decline over 3 years | -8.43% | -0.78% | -7.65% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -2.28% | -22.67% |
Max Drawdown (10Y)Largest decline over 10 years | -24.95% | — | — |
Current DrawdownCurrent decline from peak | -3.37% | 0.00% | -3.37% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -0.27% | -3.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.19% | 0.02% | +1.17% |
Volatility
LQD vs. VRIG - Volatility Comparison
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a higher volatility of 1.78% compared to Invesco Variable Rate Investment Grade ETF (VRIG) at 0.10%. This indicates that LQD's price experiences larger fluctuations and is considered to be riskier than VRIG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LQD | VRIG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.78% | 0.10% | +1.68% |
Volatility (6M)Calculated over the trailing 6-month period | 4.02% | 0.35% | +3.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.37% | 0.50% | +4.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 1.29% | +7.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.69% | 3.79% | +4.90% |
LQD vs. VRIG - Expense Ratio Comparison
LQD has a 0.15% expense ratio, which is lower than VRIG's 0.30% expense ratio.
Dividends
LQD vs. VRIG - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.55%, less than VRIG's 4.79% 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% |
VRIG Invesco Variable Rate Investment Grade ETF | 4.79% | 4.99% | 6.09% | 5.97% | 2.39% | 0.78% | 1.57% | 3.12% | 2.89% | 2.31% | 0.60% | 0.00% |
Frequently Asked Questions
LQD and VRIG have a correlation of 0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQD has higher volatility (1.78%) compared to VRIG (0.10%). In terms of maximum drawdown, LQD dropped -24.95% vs VRIG's -13.04%.
On 5-year performance, VRIG leads with 4.44% vs -0.21% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, VRIG has been the lower-risk option at 0.10%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VRIG has performed better with a 4.44% return vs -0.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LQD is cheaper with a 0.15% expense ratio, compared with 0.30% for VRIG.
VRIG has the higher dividend yield at 4.79%, compared with 4.55% for LQD.
LQD is categorized as Corporate Bonds, while VRIG is Ultrashort Bond. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.15% for LQD and 0.30% for VRIG.
VRIG currently has the higher Sharpe Ratio (10.00 vs 0.97), 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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