LQDB vs. MILK

Last updated Jun 4, 2026

LQDB (iShares BBB Rated Corporate Bond ETF) and MILK (Pacer US Cash Cows Bond ETF) are both Corporate Bonds funds - LQDB tracks the iBoxx USD Liquid Investment Grade BBB 0+ Index while MILK tracks the Solactive Pacer US Cash Cows Bond Index. Both are passively managed. Over the past year, LQDB returned 5.96% vs 9.23% for MILK. Their correlation of 0.94 suggests significant overlap in exposure. LQDB charges 0.15%/yr vs 0.49%/yr for MILK.

Performance

LQDB vs. MILK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares BBB Rated Corporate Bond ETF (LQDB) and Pacer US Cash Cows Bond ETF (MILK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LQDB achieves a 0.77% return, which is significantly lower than MILK's 2.18% return.

LQDB

• 1D: -0.18%
• 1M: 0.58%
• YTD: 0.77%
• 6M: 0.56%
• 1Y: 5.96%
• 3Y*: 5.59%
• 5Y*: 0.84%
• 10Y*: —

MILK

• 1D: -0.24%
• 1M: 1.10%
• YTD: 2.18%
• 6M: 1.55%
• 1Y: 9.23%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

LQDB vs. MILK - Yearly Performance Comparison

	2026 (YTD)	2025	2024
LQDB iShares BBB Rated Corporate Bond ETF	0.77%	7.50%	-0.26%
MILK Pacer US Cash Cows Bond ETF	2.18%	7.49%	-0.35%

Correlation

The correlation between LQDB and MILK is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (All Time) Calculated using the full available price history since Dec 19, 2024	0.94

The correlation between LQDB and MILK has been stable across timeframes, ranging from 0.94 to 0.94 - a consistent structural relationship.

Return for Risk

LQDB vs. MILK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LQDB

LQDB Risk / Return Rank: 43
LQDB Sharpe Ratio Rank: 42
LQDB Sortino Ratio Rank: 42
LQDB Omega Ratio Rank: 40
LQDB Calmar Ratio Rank: 45
LQDB Martin Ratio Rank: 43

MILK

MILK Risk / Return Rank: 52
MILK Sharpe Ratio Rank: 53
MILK Sortino Ratio Rank: 55
MILK Omega Ratio Rank: 51
MILK Calmar Ratio Rank: 50
MILK Martin Ratio Rank: 53

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LQDB vs. MILK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares BBB Rated Corporate Bond ETF (LQDB) and Pacer US Cash Cows Bond ETF (MILK). 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	MILK	Difference
Sharpe ratio: Return per unit of total volatility	1.47	1.78	-0.31
Sortino ratio: Return per unit of downside risk	2.15	2.59	-0.43
Omega ratio: Gain probability vs. loss probability	1.26	1.32	-0.06
Calmar ratio: Return relative to maximum drawdown	2.24	2.47	-0.23
Martin ratio: Return relative to average drawdown	6.94	8.90	-1.95
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LQDB vs. MILK - Sharpe Ratio Comparison

The current LQDB Sharpe Ratio is 1.47, which is comparable to the MILK Sharpe Ratio of 1.78. The chart below compares the historical Sharpe Ratios of LQDB and MILK, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LQDB	MILK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.47	1.78	-0.31
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	0.97	-0.82

Drawdowns

LQDB vs. MILK - Drawdown Comparison

The maximum LQDB drawdown since its inception was -21.63%, which is greater than MILK's maximum drawdown of -6.16%. Use the drawdown chart below to compare losses from any high point for LQDB and MILK.

Drawdown Indicators

	LQDB	MILK	Difference
Max Drawdown Largest peak-to-trough decline	-21.63%	-6.16%	-15.47%
Max Drawdown (1Y) Largest decline over 1 year	-2.67%	-3.75%	+1.08%
Max Drawdown (3Y) Largest decline over 3 years	-5.90%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-21.63%	—	—
Current Drawdown Current decline from peak	-0.83%	-0.24%	-0.59%
Average Drawdown Average peak-to-trough decline	-7.93%	-1.09%	-6.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.86%	1.04%	-0.18%

Volatility

LQDB vs. MILK - Volatility Comparison

The current volatility for iShares BBB Rated Corporate Bond ETF (LQDB) is 1.31%, while Pacer US Cash Cows Bond ETF (MILK) has a volatility of 1.58%. This indicates that LQDB experiences smaller price fluctuations and is considered to be less risky than MILK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LQDB	MILK	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.31%	1.58%	-0.27%
Volatility (6M) Calculated over the trailing 6-month period	3.08%	3.78%	-0.70%
Volatility (1Y) Calculated over the trailing 1-year period	4.07%	5.21%	-1.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.87%	6.69%	+0.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.85%	6.69%	+0.16%

LQDB vs. MILK - Expense Ratio Comparison

LQDB has a 0.15% expense ratio, which is lower than MILK's 0.49% expense ratio.

Dividends

LQDB vs. MILK - Dividend Comparison

LQDB's dividend yield for the trailing twelve months is around 4.70%, less than MILK's 7.04% 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%
MILK Pacer US Cash Cows Bond ETF	7.04%	6.97%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LQDB and MILK in my portfolio?

With a correlation of 0.94, LQDB and MILK move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, LQDB or MILK?

MILK has higher volatility (1.58%) compared to LQDB (1.31%). In terms of maximum drawdown, LQDB dropped -21.63% vs MILK's -6.16%.

Which ETF is better, LQDB or MILK?

On 1-year performance, MILK leads with 9.23% vs 5.96% for LQDB. 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.

Which ETF has performed better, LQDB or MILK?

Over the 1-year period, MILK has performed better with a 9.23% return vs 5.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LQDB or MILK?

LQDB is cheaper with a 0.15% expense ratio, compared with 0.49% for MILK.

Which ETF pays a higher dividend yield, LQDB or MILK?

MILK has the higher dividend yield at 7.04%, compared with 4.70% for LQDB.

What is the main difference between LQDB and MILK?

LQDB tracks iBoxx USD Liquid Investment Grade BBB 0+ Index , while MILK tracks Solactive Pacer US Cash Cows Bond Index. They also come from different issuers: iShares and Pacer. Their fees differ too: 0.15% for LQDB and 0.49% for MILK.

Which has better risk-adjusted returns?

MILK currently has the higher Sharpe Ratio (1.78 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.