LQDH vs. SGOV
Compare and contrast key facts about iShares Interest Rate Hedged Corporate Bond ETF (LQDH) and iShares 0-3 Month Treasury Bond ETF (SGOV).
LQDH and SGOV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. LQDH is an actively managed fund by iShares. It was launched on May 27, 2014. SGOV is a passively managed fund by iShares that tracks the performance of the ICE 0-3 Month US Treasury Bill Index. It was launched on May 26, 2020.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: LQDH or SGOV.
Key characteristics
| LQDH | SGOV | |
|---|---|---|
| YTD Return | 7.28% | 4.62% |
| 1Y Return | 10.51% | 5.39% |
| 3Y Return (Ann) | 5.23% | 3.78% |
| Sharpe Ratio | 3.73 | 22.10 |
| Ulcer Index | 0.36% | 0.00% |
| Daily Std Dev | 2.83% | 0.25% |
| Max Drawdown | -24.63% | -0.03% |
| Current Drawdown | 0.00% | 0.00% |
Correlation
The correlation between LQDH and SGOV is 0.04, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
LQDH vs. SGOV - Performance Comparison
In the year-to-date period, LQDH achieves a 7.28% return, which is significantly higher than SGOV's 4.62% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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LQDH vs. SGOV - Expense Ratio Comparison
LQDH has a 0.25% expense ratio, which is higher than SGOV's 0.03% 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%.
Risk-Adjusted Performance
LQDH vs. SGOV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Interest Rate Hedged Corporate Bond ETF (LQDH) and iShares 0-3 Month Treasury Bond ETF (SGOV). 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.
Dividends
LQDH vs. SGOV - Dividend Comparison
LQDH's dividend yield for the trailing twelve months is around 7.98%, more than SGOV's 5.24% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
LQDH iShares Interest Rate Hedged Corporate Bond ETF | 7.98% | 7.69% | 3.73% | 1.64% | 2.22% | 3.09% | 5.08% | 2.37% | 2.33% | 2.98% | 2.19% |
SGOV iShares 0-3 Month Treasury Bond ETF | 5.24% | 4.87% | 1.45% | 0.03% | 0.04% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
LQDH vs. SGOV - Drawdown Comparison
The maximum LQDH drawdown since its inception was -24.63%, which is greater than SGOV's maximum drawdown of -0.03%. Use the drawdown chart below to compare losses from any high point for LQDH and SGOV. For additional features, visit the drawdowns tool.
Volatility
LQDH vs. SGOV - Volatility Comparison
iShares Interest Rate Hedged Corporate Bond ETF (LQDH) has a higher volatility of 0.84% compared to iShares 0-3 Month Treasury Bond ETF (SGOV) at 0.08%. This indicates that LQDH's price experiences larger fluctuations and is considered to be riskier than SGOV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.