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 0.04%/yr vs -8.33%/yr for TLT. Their correlation of 0.86 means they have usually moved in the same direction. 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 -0.12% return, which is significantly higher than TLT's -3.18% return.
LQDB
- 1D
- 0.26%
- 1M
- -1.23%
- 6M
- -0.56%
- YTD
- -0.12%
- 1Y
- 2.27%
- 3Y*
- 5.31%
- 5Y*
- 0.04%
- 10Y*
- —
- ALL TIME*
- 0.79%
TLT
- 1D
- 0.33%
- 1M
- -3.49%
- 6M
- -2.86%
- YTD
- -3.18%
- 1Y
- -2.12%
- 3Y*
- -1.15%
- 5Y*
- -8.33%
- 10Y*
- -2.33%
- ALL TIME*
- 3.48%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $208.83K | $216.78K | $419.92K | |
| $2.39B | $2.06B | $2.20B |
LQDB vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
LQDB iShares BBB Rated Corporate Bond ETF | -0.12% | 7.50% | 2.37% | 9.60% | -15.51% | 2.35% |
TLT iShares 20+ Year Treasury Bond ETF | -3.18% | 4.25% | -8.05% | 2.77% | -31.23% | 9.98% |
Correlation
The correlation between LQDB and TLT is 0.85, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.85 |
Correlation (3Y) Balances recent behavior with more history. | 0.89 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.86 |
Correlation (All Time) Calculated using the full available price history since May 20, 2021 | 0.86 |
The correlation between LQDB and TLT has been stable across timeframes, ranging from 0.85 to 0.89 - 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| LQDB | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.80 | ||
| Sortino ratioReturn per unit of downside risk | +1.08 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 0.97 | +0.13 |
| Calmar ratioReturn relative to maximum drawdown | 0.85 | -0.28 | +1.13 |
| Martin ratioReturn relative to average drawdown | 2.36 | -0.59 | +2.95 |
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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% | -7.74% | +5.07% |
Max Drawdown (3Y)Largest decline over 3 years | -4.78% | -14.79% | +10.01% |
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 | -1.71% | -42.17% | +40.46% |
Average DrawdownAverage peak-to-trough decline | -7.70% | -14.00% | +6.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.97% | 3.60% | -2.63% |
Volatility
LQDB vs. TLT - Volatility Comparison
The current volatility for iShares BBB Rated Corporate Bond ETF (LQDB) is 1.15%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.51%. 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 | 1.15% | 2.51% | -1.36% |
Volatility (6M)Calculated over the trailing 6-month period | 3.29% | 6.84% | -3.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.03% | 9.24% | -5.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.87% | 15.74% | -8.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.78% | 14.83% | -8.05% |
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 4.80%, more than TLT's 4.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQDB iShares BBB Rated Corporate Bond ETF | 4.80% | 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 | 4.75% | 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 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.51%) compared to LQDB (1.15%). In terms of maximum drawdown, LQDB dropped -21.63% vs TLT's -48.35%.
On 5-year performance, LQDB leads with 0.04% vs -8.33% for TLT. Both ETFs have the same 0.15% expense ratio. On volatility, LQDB has been the lower-risk option at 1.15%. 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 0.04% return vs -8.33%. 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 4.80%, compared with 4.75% 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 (0.57 vs -0.23), 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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