LQDB vs. SHYG
LQDB (iShares BBB Rated Corporate Bond ETF) and SHYG (iShares 0-5 Year High Yield Corporate Bond ETF) are both exchange-traded funds - LQDB is a Corporate Bonds fund tracking the iBoxx USD Liquid Investment Grade BBB 0+ Index , while SHYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield 0-5 Index. Both are passively managed. Over the past 5 years, LQDB returned 0.84%/yr vs 4.83%/yr for SHYG. A 0.60 correlation means they provide meaningful diversification when combined. LQDB charges 0.15%/yr vs 0.30%/yr for SHYG.
Performance
LQDB vs. SHYG - 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 SHYG's 1.44% return.
LQDB
- 1D
- -0.18%
- 1M
- 0.58%
- YTD
- 0.77%
- 6M
- 0.56%
- 1Y
- 5.96%
- 3Y*
- 5.59%
- 5Y*
- 0.84%
- 10Y*
- —
SHYG
- 1D
- -0.24%
- 1M
- 0.35%
- YTD
- 1.44%
- 6M
- 1.95%
- 1Y
- 6.50%
- 3Y*
- 8.12%
- 5Y*
- 4.83%
- 10Y*
- 5.18%
LQDB vs. SHYG - 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% |
SHYG iShares 0-5 Year High Yield Corporate Bond ETF | 1.44% | 7.94% | 8.17% | 10.38% | -4.71% | 2.20% |
Correlation
The correlation between LQDB and SHYG is 0.67, 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 | 0.67 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.60 |
Correlation (All Time) Calculated using the full available price history since May 21, 2021 | 0.60 |
The correlation between LQDB and SHYG has been stable across timeframes, ranging from 0.60 to 0.68 - a consistent structural relationship.
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Return for Risk
LQDB vs. SHYG — Risk / Return Rank
LQDB
SHYG
LQDB vs. SHYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares BBB Rated Corporate Bond ETF (LQDB) and iShares 0-5 Year High Yield Corporate Bond ETF (SHYG). 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 | SHYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.60 | ||
| Sortino ratioReturn per unit of downside risk | -1.02 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.41 | -0.15 |
| Calmar ratioReturn relative to maximum drawdown | 2.24 | 3.73 | -1.49 |
| Martin ratioReturn relative to average drawdown | 6.94 | 16.23 | -9.29 |
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 | SHYG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.47 | 2.07 | -0.60 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.12 | 0.85 | -0.72 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.81 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.15 | 0.73 | -0.58 |
Drawdowns
LQDB vs. SHYG - Drawdown Comparison
The maximum LQDB drawdown since its inception was -21.63%, which is greater than SHYG's maximum drawdown of -19.26%. Use the drawdown chart below to compare losses from any high point for LQDB and SHYG.
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Drawdown Indicators
| LQDB | SHYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.63% | -19.26% | -2.37% |
Max Drawdown (1Y)Largest decline over 1 year | -2.67% | -1.75% | -0.92% |
Max Drawdown (3Y)Largest decline over 3 years | -5.90% | -4.53% | -1.37% |
Max Drawdown (5Y)Largest decline over 5 years | -21.63% | -9.39% | -12.24% |
Max Drawdown (10Y)Largest decline over 10 years | — | -19.26% | — |
Current DrawdownCurrent decline from peak | -0.83% | -0.24% | -0.59% |
Average DrawdownAverage peak-to-trough decline | -7.93% | -1.44% | -6.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 0.40% | +0.46% |
Volatility
LQDB vs. SHYG - Volatility Comparison
iShares BBB Rated Corporate Bond ETF (LQDB) has a higher volatility of 1.31% compared to iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) at 0.94%. This indicates that LQDB's price experiences larger fluctuations and is considered to be riskier than SHYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LQDB | SHYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.31% | 0.94% | +0.37% |
Volatility (6M)Calculated over the trailing 6-month period | 3.08% | 2.51% | +0.57% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.07% | 3.16% | +0.91% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.87% | 5.73% | +1.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.85% | 6.42% | +0.43% |
LQDB vs. SHYG - Expense Ratio Comparison
LQDB has a 0.15% expense ratio, which is lower than SHYG's 0.30% expense ratio.
Dividends
LQDB vs. SHYG - Dividend Comparison
LQDB's dividend yield for the trailing twelve months is around 4.70%, less than SHYG's 7.02% 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% |
SHYG iShares 0-5 Year High Yield Corporate Bond ETF | 7.02% | 7.03% | 6.93% | 6.54% | 5.57% | 4.83% | 5.07% | 5.33% | 5.90% | 5.49% | 5.53% | 5.17% |
Frequently Asked Questions
LQDB and SHYG have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQDB has higher volatility (1.31%) compared to SHYG (0.94%). In terms of maximum drawdown, LQDB dropped -21.63% vs SHYG's -19.26%.
On 5-year performance, SHYG leads with 4.83% vs 0.84% for LQDB. On fees, LQDB is cheaper at 0.15% per year. On volatility, SHYG has been the lower-risk option at 0.94%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SHYG has performed better with a 4.83% return vs 0.84%. 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 0.30% for SHYG.
SHYG has the higher dividend yield at 7.02%, compared with 4.70% for LQDB.
LQDB is categorized as Corporate Bonds, while SHYG is High Yield Bonds. LQDB tracks iBoxx USD Liquid Investment Grade BBB 0+ Index , while SHYG tracks Markit iBoxx USD Liquid High Yield 0-5 Index. Their fees differ too: 0.15% for LQDB and 0.30% for SHYG.
SHYG currently has the higher Sharpe Ratio (2.07 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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