LQDB vs. TLT
LQDB (iShares BBB Rated Corporate Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - LQDB is a Corporate Bonds fund tracking the iBoxx USD Liquid Investment Grade BBB 0+ Index , while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 5 years, LQDB returned 0.84%/yr vs -6.31%/yr for TLT. Their correlation of 0.86 suggests significant overlap in exposure. Both charge a 0.15% expense ratio.
Performance
LQDB vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, LQDB achieves a 0.77% return, which is significantly higher than TLT's -0.27% return.
LQDB
- 1D
- -0.18%
- 1M
- 0.58%
- YTD
- 0.77%
- 6M
- 0.56%
- 1Y
- 5.96%
- 3Y*
- 5.59%
- 5Y*
- 0.84%
- 10Y*
- —
TLT
- 1D
- -0.40%
- 1M
- 0.81%
- YTD
- -0.27%
- 6M
- -2.02%
- 1Y
- 4.93%
- 3Y*
- -1.80%
- 5Y*
- -6.31%
- 10Y*
- -1.66%
LQDB vs. TLT - 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% |
TLT iShares 20+ Year Treasury Bond ETF | -0.27% | 4.25% | -8.05% | 2.77% | -31.23% | 9.08% |
Correlation
The correlation between LQDB and TLT is 0.86, 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 | 0.86 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.90 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since May 21, 2021 | 0.86 |
The correlation between LQDB and TLT has been stable across timeframes, ranging from 0.86 to 0.90 - a consistent structural relationship.
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Return for Risk
LQDB vs. TLT — Risk / Return Rank
LQDB
TLT
LQDB vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares BBB Rated Corporate Bond ETF (LQDB) and iShares 20+ Year Treasury Bond ETF (TLT). 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 | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.96 | ||
| Sortino ratioReturn per unit of downside risk | +1.35 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.09 | +0.17 |
| Calmar ratioReturn relative to maximum drawdown | 2.24 | 0.65 | +1.59 |
| Martin ratioReturn relative to average drawdown | 6.94 | 1.63 | +5.32 |
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 | TLT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.47 | 0.51 | +0.96 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.12 | -0.40 | +0.52 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | -0.11 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.15 | 0.26 | -0.11 |
Drawdowns
LQDB vs. TLT - Drawdown Comparison
The maximum LQDB drawdown since its inception was -21.63%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for LQDB and TLT.
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Drawdown Indicators
| LQDB | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.63% | -48.35% | +26.72% |
Max Drawdown (1Y)Largest decline over 1 year | -2.67% | -7.58% | +4.91% |
Max Drawdown (3Y)Largest decline over 3 years | -5.90% | -19.18% | +13.28% |
Max Drawdown (5Y)Largest decline over 5 years | -21.63% | -43.70% | +22.07% |
Max Drawdown (10Y)Largest decline over 10 years | — | -48.35% | — |
Current DrawdownCurrent decline from peak | -0.83% | -40.44% | +39.61% |
Average DrawdownAverage peak-to-trough decline | -7.93% | -13.82% | +5.89% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 3.04% | -2.18% |
Volatility
LQDB vs. TLT - Volatility Comparison
The current volatility for iShares BBB Rated Corporate Bond ETF (LQDB) is 1.31%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.76%. This indicates that LQDB experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LQDB | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.31% | 2.76% | -1.45% |
Volatility (6M)Calculated over the trailing 6-month period | 3.08% | 6.50% | -3.42% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.07% | 9.77% | -5.70% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.87% | 15.87% | -9.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.85% | 14.91% | -8.06% |
LQDB vs. TLT - Expense Ratio Comparison
Both LQDB and TLT have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
LQDB vs. TLT - Dividend Comparison
LQDB's dividend yield for the trailing twelve months is around 4.70%, more than TLT's 4.59% 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% |
TLT iShares 20+ Year Treasury Bond ETF | 4.59% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
LQDB and TLT have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.76%) compared to LQDB (1.31%). In terms of maximum drawdown, LQDB dropped -21.63% vs TLT's -48.35%.
On 5-year performance, LQDB leads with 0.84% vs -6.31% for TLT. Both ETFs have the same 0.15% expense ratio. 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 5-year period, LQDB has performed better with a 0.84% return vs -6.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LQDB and TLT have the same expense ratio: 0.15% per year.
LQDB has the higher dividend yield at 4.70%, compared with 4.59% for TLT.
LQDB is categorized as Corporate Bonds, while TLT is Government Bonds. LQDB tracks iBoxx USD Liquid Investment Grade BBB 0+ Index , while TLT tracks ICE U.S. Treasury 20+ Year Bond Index.
LQDB currently has the higher Sharpe Ratio (1.47 vs 0.51), 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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