LQDI vs. ACLO

Last updated Jun 23, 2026

LQDI (iShares Inflation Hedged Corporate Bond ETF) and ACLO (TCW AAA CLO ETF) are both exchange-traded funds - LQDI is a Inflation-Protected Bonds fund actively managed by iShares, while ACLO is a CLO fund actively managed by TCW. Both are actively managed. Over the past year, LQDI returned 5.80% vs 5.31% for ACLO. At a 0.03 correlation, their price movements are largely independent. LQDI charges 0.18%/yr vs 0.20%/yr for ACLO.

Performance

LQDI vs. ACLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Inflation Hedged Corporate Bond ETF (LQDI) and TCW AAA CLO ETF (ACLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LQDI achieves a 1.31% return, which is significantly lower than ACLO's 2.41% return.

LQDI

• 1D: -0.08%
• 1M: 0.35%
• YTD: 1.31%
• 6M: 1.60%
• 1Y: 5.80%
• 3Y*: 5.40%
• 5Y*: 1.83%
• 10Y*: —

ACLO

• 1D: 0.00%
• 1M: 0.41%
• YTD: 2.41%
• 6M: 2.53%
• 1Y: 5.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

LQDI vs. ACLO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
LQDI iShares Inflation Hedged Corporate Bond ETF	1.31%	8.84%	-1.46%
ACLO TCW AAA CLO ETF	2.41%	5.32%	0.81%

Correlation

The correlation between LQDI and ACLO is -0.10, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.10
Correlation (All Time) Calculated using the full available price history since Nov 18, 2024	0.03

The correlation between LQDI and ACLO shifts across timeframes, from -0.10 (1 year) to 0.03 (all time), reflecting how their relationship changes across market environments.

Return for Risk

LQDI vs. ACLO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LQDI

LQDI Risk / Return Rank: 36
LQDI Sharpe Ratio Rank: 34
LQDI Sortino Ratio Rank: 33
LQDI Omega Ratio Rank: 31
LQDI Calmar Ratio Rank: 42
LQDI Martin Ratio Rank: 39

ACLO

ACLO Risk / Return Rank: 99
ACLO Sharpe Ratio Rank: 99
ACLO Sortino Ratio Rank: 99
ACLO Omega Ratio Rank: 99
ACLO Calmar Ratio Rank: 99
ACLO Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LQDI vs. ACLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Inflation Hedged Corporate Bond ETF (LQDI) and TCW AAA CLO ETF (ACLO). 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.

	LQDI	ACLO	Difference
Sharpe ratio: Return per unit of total volatility	1.17	7.32	-6.15
Sortino ratio: Return per unit of downside risk	1.72	15.16	-13.44
Omega ratio: Gain probability vs. loss probability	1.21	3.44	-2.23
Calmar ratio: Return relative to maximum drawdown	2.02	19.90	-17.88
Martin ratio: Return relative to average drawdown	6.05	165.46	-159.41

LQDI vs. ACLO - Sharpe Ratio Comparison

The current LQDI Sharpe Ratio is 1.17, which is lower than the ACLO Sharpe Ratio of 7.32. The chart below compares the historical Sharpe Ratios of LQDI and ACLO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LQDI vs. ACLO - Drawdown Comparison

The maximum LQDI drawdown since its inception was -28.99%, which is greater than ACLO's maximum drawdown of -1.01%. Use the drawdown chart below to compare losses from any high point for LQDI and ACLO.

Drawdown Indicators

	LQDI	ACLO	Difference
Max Drawdown Largest peak-to-trough decline	-28.99%	-1.01%	-27.98%
Max Drawdown (1Y) Largest decline over 1 year	-2.88%	-0.27%	-2.61%
Max Drawdown (3Y) Largest decline over 3 years	-6.27%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-20.67%	—	—
Current Drawdown Current decline from peak	-0.80%	0.00%	-0.80%
Average Drawdown Average peak-to-trough decline	-5.22%	-0.04%	-5.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.03%	+0.93%

Volatility

LQDI vs. ACLO - Volatility Comparison

iShares Inflation Hedged Corporate Bond ETF (LQDI) has a higher volatility of 1.20% compared to TCW AAA CLO ETF (ACLO) at 0.19%. This indicates that LQDI's price experiences larger fluctuations and is considered to be riskier than ACLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LQDI	ACLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.20%	0.19%	+1.01%
Volatility (6M) Calculated over the trailing 6-month period	3.49%	0.58%	+2.91%
Volatility (1Y) Calculated over the trailing 1-year period	4.97%	0.73%	+4.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.15%	1.07%	+7.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.81%	1.07%	+9.74%

LQDI vs. ACLO - Expense Ratio Comparison

LQDI has a 0.18% expense ratio, which is lower than ACLO's 0.20% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

LQDI vs. ACLO - Dividend Comparison

LQDI's dividend yield for the trailing twelve months is around 4.60%, less than ACLO's 4.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
ACLO TCW AAA CLO ETF	4.90%	4.87%	0.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
LQDI iShares Inflation Hedged Corporate Bond ETF	4.60%	4.46%	4.65%	3.98%	3.27%	2.42%	2.34%	3.26%	2.53%

Frequently Asked Questions

Can I hold both LQDI and ACLO in my portfolio?

LQDI and ACLO have a correlation of -0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LQDI or ACLO?

LQDI has higher volatility (1.20%) compared to ACLO (0.19%). In terms of maximum drawdown, LQDI dropped -28.99% vs ACLO's -1.01%.

Which ETF is better, LQDI or ACLO?

On 1-year performance, LQDI leads with 5.80% vs 5.31% for ACLO. On fees, LQDI is cheaper at 0.18% per year. On volatility, ACLO has been the lower-risk option at 0.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LQDI or ACLO?

Over the 1-year period, LQDI has performed better with a 5.80% return vs 5.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LQDI or ACLO?

LQDI is cheaper with a 0.18% expense ratio, compared with 0.20% for ACLO.

Which ETF pays a higher dividend yield, LQDI or ACLO?

ACLO has the higher dividend yield at 4.90%, compared with 4.60% for LQDI.

What is the main difference between LQDI and ACLO?

LQDI is categorized as Inflation-Protected Bonds, while ACLO is CLO. They also come from different issuers: iShares and TCW. Their fees differ too: 0.18% for LQDI and 0.20% for ACLO.

Which has better risk-adjusted returns?

ACLO currently has the higher Sharpe Ratio (7.32 vs 1.17), 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.