LQDH vs. TIP
Compare and contrast key facts about iShares Interest Rate Hedged Corporate Bond ETF (LQDH) and iShares TIPS Bond ETF (TIP).
LQDH and TIP 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. TIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). It was launched on Dec 4, 2003.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: LQDH or TIP.
Performance
LQDH vs. TIP - Performance Comparison
Returns By Period
In the year-to-date period, LQDH achieves a 6.72% return, which is significantly higher than TIP's 2.59% return. Over the past 10 years, LQDH has outperformed TIP with an annualized return of 3.61%, while TIP has yielded a comparatively lower 2.07% annualized return.
LQDH
6.72%
0.57%
2.93%
8.22%
4.47%
3.61%
TIP
2.59%
-1.27%
2.57%
5.51%
1.88%
2.07%
Key characteristics
| LQDH | TIP | |
|---|---|---|
| Sharpe Ratio | 3.00 | 1.18 |
| Sortino Ratio | 4.48 | 1.74 |
| Omega Ratio | 1.62 | 1.21 |
| Calmar Ratio | 4.65 | 0.47 |
| Martin Ratio | 22.93 | 5.04 |
| Ulcer Index | 0.37% | 1.16% |
| Daily Std Dev | 2.82% | 4.92% |
| Max Drawdown | -24.63% | -14.56% |
| Current Drawdown | -0.52% | -7.05% |
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LQDH vs. TIP - Expense Ratio Comparison
LQDH has a 0.25% expense ratio, which is higher than TIP's 0.19% 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%.
Correlation
The correlation between LQDH and TIP is 0.06, 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.
Risk-Adjusted Performance
LQDH vs. TIP - 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 TIPS Bond ETF (TIP). 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. TIP - Dividend Comparison
LQDH's dividend yield for the trailing twelve months is around 8.02%, more than TIP's 2.40% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQDH iShares Interest Rate Hedged Corporate Bond ETF | 8.02% | 7.69% | 3.73% | 1.64% | 2.22% | 3.09% | 5.08% | 2.37% | 2.33% | 2.98% | 2.19% | 0.00% |
TIP iShares TIPS Bond ETF | 2.40% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
Drawdowns
LQDH vs. TIP - Drawdown Comparison
The maximum LQDH drawdown since its inception was -24.63%, which is greater than TIP's maximum drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for LQDH and TIP. For additional features, visit the drawdowns tool.
Volatility
LQDH vs. TIP - Volatility Comparison
The current volatility for iShares Interest Rate Hedged Corporate Bond ETF (LQDH) is 0.85%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.13%. This indicates that LQDH experiences smaller price fluctuations and is considered to be less risky than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.