LQDB vs. SCHR

Last updated Jun 4, 2026

LQDB (iShares BBB Rated Corporate Bond ETF) and SCHR (Schwab Intermediate-Term U.S. Treasury ETF) are both exchange-traded funds - LQDB is a Corporate Bonds fund tracking the iBoxx USD Liquid Investment Grade BBB 0+ Index , while SCHR is a Government Bonds fund tracking the Bloomberg US Treasury 3-10 Year Index. Both are passively managed. Over the past 5 years, LQDB returned 0.84%/yr vs 0.05%/yr for SCHR. Their correlation of 0.84 suggests significant overlap in exposure. LQDB charges 0.15%/yr vs 0.05%/yr for SCHR.

Performance

LQDB vs. SCHR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares BBB Rated Corporate Bond ETF (LQDB) and Schwab Intermediate-Term U.S. Treasury ETF (SCHR). 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 higher than SCHR's -0.43% return.

LQDB

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

SCHR

• 1D: -0.16%
• 1M: -0.15%
• YTD: -0.43%
• 6M: -0.59%
• 1Y: 3.55%
• 3Y*: 3.41%
• 5Y*: 0.05%
• 10Y*: 1.23%

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

LQDB vs. SCHR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
LQDB iShares BBB Rated Corporate Bond ETF	0.77%	7.50%	2.37%	9.60%	-15.51%	2.35%
SCHR Schwab Intermediate-Term U.S. Treasury ETF	-0.43%	7.33%	1.42%	4.27%	-10.58%	-0.46%

Correlation

The correlation between LQDB and SCHR is 0.82, 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	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (All Time) Calculated using the full available price history since May 21, 2021	0.84

The correlation between LQDB and SCHR has been stable across timeframes, ranging from 0.82 to 0.87 - a consistent structural relationship.

Return for Risk

LQDB vs. SCHR — 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

SCHR

SCHR Risk / Return Rank: 27
SCHR Sharpe Ratio Rank: 28
SCHR Sortino Ratio Rank: 28
SCHR Omega Ratio Rank: 26
SCHR Calmar Ratio Rank: 26
SCHR Martin Ratio Rank: 27

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. SCHR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares BBB Rated Corporate Bond ETF (LQDB) and Schwab Intermediate-Term U.S. Treasury ETF (SCHR). 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	SCHR	Difference
Sharpe ratio Return per unit of total volatility	1.47	1.04	+0.43
Sortino ratio Return per unit of downside risk	2.15	1.57	+0.58
Omega ratio Gain probability vs. loss probability	1.26	1.18	+0.08
Calmar ratio Return relative to maximum drawdown	2.24	1.27	+0.97
Martin ratio Return relative to average drawdown	6.94	3.82	+3.12
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. SCHR - Sharpe Ratio Comparison

The current LQDB Sharpe Ratio is 1.47, which is higher than the SCHR Sharpe Ratio of 1.04. The chart below compares the historical Sharpe Ratios of LQDB and SCHR, 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	SCHR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.47	1.04	+0.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.12	0.01	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.28	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.15	0.44	-0.30

Drawdowns

LQDB vs. SCHR - Drawdown Comparison

The maximum LQDB drawdown since its inception was -21.63%, which is greater than SCHR's maximum drawdown of -16.11%. Use the drawdown chart below to compare losses from any high point for LQDB and SCHR.

Drawdown Indicators

	LQDB	SCHR	Difference
Max Drawdown Largest peak-to-trough decline	-21.63%	-16.11%	-5.52%
Max Drawdown (1Y) Largest decline over 1 year	-2.67%	-2.79%	+0.12%
Max Drawdown (3Y) Largest decline over 3 years	-5.90%	-4.35%	-1.55%
Max Drawdown (5Y) Largest decline over 5 years	-21.63%	-15.07%	-6.56%
Max Drawdown (10Y) Largest decline over 10 years	—	-16.11%	—
Current Drawdown Current decline from peak	-0.83%	-2.37%	+1.54%
Average Drawdown Average peak-to-trough decline	-7.93%	-3.64%	-4.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.86%	0.93%	-0.07%

Volatility

LQDB vs. SCHR - Volatility Comparison

iShares BBB Rated Corporate Bond ETF (LQDB) has a higher volatility of 1.31% compared to Schwab Intermediate-Term U.S. Treasury ETF (SCHR) at 1.08%. This indicates that LQDB's price experiences larger fluctuations and is considered to be riskier than SCHR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LQDB	SCHR	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.31%	1.08%	+0.23%
Volatility (6M) Calculated over the trailing 6-month period	3.08%	2.35%	+0.73%
Volatility (1Y) Calculated over the trailing 1-year period	4.07%	3.43%	+0.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.87%	5.38%	+1.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.85%	4.47%	+2.38%

LQDB vs. SCHR - Expense Ratio Comparison

LQDB has a 0.15% expense ratio, which is higher than SCHR's 0.05% 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

LQDB vs. SCHR - Dividend Comparison

LQDB's dividend yield for the trailing twelve months is around 4.70%, more than SCHR's 3.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LQDB iShares BBB Rated Corporate Bond ETF	4.70%	4.65%	4.46%	3.90%	4.14%	1.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHR Schwab Intermediate-Term U.S. Treasury ETF	3.92%	3.85%	3.77%	3.16%	2.02%	1.00%	1.62%	2.31%	2.11%	1.65%	1.45%	1.56%

Frequently Asked Questions

Can I hold both LQDB and SCHR in my portfolio?

LQDB and SCHR have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LQDB or SCHR?

LQDB has higher volatility (1.31%) compared to SCHR (1.08%). In terms of maximum drawdown, LQDB dropped -21.63% vs SCHR's -16.11%.

Which ETF is better, LQDB or SCHR?

On 5-year performance, LQDB leads with 0.84% vs 0.05% for SCHR. On fees, SCHR is cheaper at 0.05% per year. On volatility, SCHR has been the lower-risk option at 1.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LQDB or SCHR?

Over the 5-year period, LQDB has performed better with a 0.84% return vs 0.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LQDB or SCHR?

SCHR is cheaper with a 0.05% expense ratio, compared with 0.15% for LQDB.

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

LQDB has the higher dividend yield at 4.70%, compared with 3.92% for SCHR.

What is the main difference between LQDB and SCHR?

LQDB is categorized as Corporate Bonds, while SCHR is Government Bonds. LQDB tracks iBoxx USD Liquid Investment Grade BBB 0+ Index , while SCHR tracks Bloomberg US Treasury 3-10 Year Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.15% for LQDB and 0.05% for SCHR.

Which has better risk-adjusted returns?

LQDB currently has the higher Sharpe Ratio (1.47 vs 1.04), 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.