LQDB vs. LQDW
LQDB (iShares BBB Rated Corporate Bond ETF) and LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) are both Corporate Bonds funds from iShares - LQDB tracks the iBoxx USD Liquid Investment Grade BBB 0+ Index while LQDW tracks the CBOE LQD BuyWrite Index. Both are passively managed. Over the past 3 years, LQDB returned 5.59%/yr vs 3.79%/yr for LQDW. Their correlation of 0.82 suggests significant overlap in exposure. LQDB charges 0.15%/yr vs 0.34%/yr for LQDW.
Performance
LQDB vs. LQDW - Performance Comparison
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Returns By Period
In the year-to-date period, LQDB achieves a 0.77% return, which is significantly lower than LQDW's 1.25% return.
LQDB
- 1D
- -0.18%
- 1M
- 0.58%
- YTD
- 0.77%
- 6M
- 0.56%
- 1Y
- 5.96%
- 3Y*
- 5.59%
- 5Y*
- 0.84%
- 10Y*
- —
LQDW
- 1D
- -0.20%
- 1M
- 0.83%
- YTD
- 1.25%
- 6M
- 1.65%
- 1Y
- 6.49%
- 3Y*
- 3.79%
- 5Y*
- —
- 10Y*
- —
LQDB vs. LQDW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
LQDB iShares BBB Rated Corporate Bond ETF | 0.77% | 7.50% | 2.37% | 9.60% | -2.46% |
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 1.25% | 9.05% | 2.60% | 3.99% | -6.78% |
Correlation
The correlation between LQDB and LQDW is 0.74, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.74 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Aug 23, 2022 | 0.82 |
The correlation between LQDB and LQDW has been stable across timeframes, ranging from 0.74 to 0.82 - a consistent structural relationship.
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Return for Risk
LQDB vs. LQDW — Risk / Return Rank
LQDB
LQDW
LQDB vs. LQDW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares BBB Rated Corporate Bond ETF (LQDB) and iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). 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.
| LQDB | LQDW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.38 | ||
| Sortino ratioReturn per unit of downside risk | -0.46 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.38 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 2.24 | 2.51 | -0.27 |
| Martin ratioReturn relative to average drawdown | 6.94 | 9.39 | -2.45 |
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
| LQDB | LQDW | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.47 | 1.85 | -0.38 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.12 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.15 | 0.46 | -0.31 |
Drawdowns
LQDB vs. LQDW - Drawdown Comparison
The maximum LQDB drawdown since its inception was -21.63%, which is greater than LQDW's maximum drawdown of -9.20%. Use the drawdown chart below to compare losses from any high point for LQDB and LQDW.
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Drawdown Indicators
| LQDB | LQDW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.63% | -9.20% | -12.43% |
Max Drawdown (1Y)Largest decline over 1 year | -2.67% | -2.59% | -0.08% |
Max Drawdown (3Y)Largest decline over 3 years | -5.90% | -6.74% | +0.84% |
Max Drawdown (5Y)Largest decline over 5 years | -21.63% | — | — |
Current DrawdownCurrent decline from peak | -0.83% | -0.35% | -0.48% |
Average DrawdownAverage peak-to-trough decline | -7.93% | -2.35% | -5.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 0.69% | +0.17% |
Volatility
LQDB vs. LQDW - Volatility Comparison
The current volatility for iShares BBB Rated Corporate Bond ETF (LQDB) is 1.31%, while iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) has a volatility of 1.46%. This indicates that LQDB experiences smaller price fluctuations and is considered to be less risky than LQDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LQDB | LQDW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.31% | 1.46% | -0.15% |
Volatility (6M)Calculated over the trailing 6-month period | 3.08% | 3.02% | +0.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.07% | 3.53% | +0.54% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.87% | 5.49% | +1.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.85% | 5.49% | +1.36% |
LQDB vs. LQDW - Expense Ratio Comparison
LQDB has a 0.15% expense ratio, which is lower than LQDW's 0.34% expense ratio.
Dividends
LQDB vs. LQDW - Dividend Comparison
LQDB's dividend yield for the trailing twelve months is around 4.70%, less than LQDW's 12.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|---|
LQDB iShares BBB Rated Corporate Bond ETF | 4.70% | 4.65% | 4.46% | 3.90% | 4.14% | 1.32% |
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 12.57% | 16.02% | 15.74% | 19.28% | 8.85% | 0.00% |
Frequently Asked Questions
LQDB and LQDW have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQDW has higher volatility (1.46%) compared to LQDB (1.31%). In terms of maximum drawdown, LQDB dropped -21.63% vs LQDW's -9.20%.
On 3-year performance, LQDB leads with 5.59% vs 3.79% for LQDW. On fees, LQDB is cheaper at 0.15% per year. On volatility, LQDB has been the lower-risk option at 1.31%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, LQDB has performed better with a 5.59% return vs 3.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LQDB is cheaper with a 0.15% expense ratio, compared with 0.34% for LQDW.
LQDW has the higher dividend yield at 12.57%, compared with 4.70% for LQDB.
LQDB tracks iBoxx USD Liquid Investment Grade BBB 0+ Index , while LQDW tracks CBOE LQD BuyWrite Index. Their fees differ too: 0.15% for LQDB and 0.34% for LQDW.
LQDW currently has the higher Sharpe Ratio (1.85 vs 1.47), 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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