LQDI vs. FLOT
Compare and contrast key facts about iShares Inflation Hedged Corporate Bond ETF (LQDI) and iShares Floating Rate Bond ETF (FLOT).
LQDI and FLOT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. LQDI is an actively managed fund by iShares. It was launched on May 8, 2018. FLOT is a passively managed fund by iShares that tracks the performance of the Bloomberg US Floating Rate Notes (<5 Y). It was launched on Jun 14, 2011.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: LQDI or FLOT.
Key characteristics
| LQDI | FLOT | |
|---|---|---|
| YTD Return | -1.25% | 2.52% |
| 1Y Return | 2.89% | 6.99% |
| 3Y Return (Ann) | -0.58% | 3.47% |
| 5Y Return (Ann) | 3.59% | 2.67% |
| Sharpe Ratio | 0.39 | 9.00 |
| Daily Std Dev | 7.53% | 0.80% |
| Max Drawdown | -28.99% | -13.54% |
| Current Drawdown | -9.89% | 0.00% |
Correlation
The correlation between LQDI and FLOT is 0.14, 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
LQDI vs. FLOT - Performance Comparison
In the year-to-date period, LQDI achieves a -1.25% return, which is significantly lower than FLOT's 2.52% 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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LQDI vs. FLOT - Expense Ratio Comparison
LQDI has a 0.18% expense ratio, which is lower than FLOT'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%.
Risk-Adjusted Performance
LQDI vs. FLOT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Inflation Hedged Corporate Bond ETF (LQDI) and iShares Floating Rate Bond ETF (FLOT). 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
LQDI vs. FLOT - Dividend Comparison
LQDI's dividend yield for the trailing twelve months is around 4.40%, less than FLOT's 5.88% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQDI iShares Inflation Hedged Corporate Bond ETF | 4.40% | 3.98% | 3.27% | 2.41% | 2.52% | 3.26% | 2.53% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
FLOT iShares Floating Rate Bond ETF | 5.88% | 5.66% | 2.06% | 0.43% | 1.25% | 2.78% | 2.41% | 1.46% | 0.97% | 0.53% | 0.44% | 0.47% |
Drawdowns
LQDI vs. FLOT - Drawdown Comparison
The maximum LQDI drawdown since its inception was -28.99%, which is greater than FLOT's maximum drawdown of -13.54%. Use the drawdown chart below to compare losses from any high point for LQDI and FLOT. For additional features, visit the drawdowns tool.
Volatility
LQDI vs. FLOT - Volatility Comparison
iShares Inflation Hedged Corporate Bond ETF (LQDI) has a higher volatility of 2.02% compared to iShares Floating Rate Bond ETF (FLOT) at 0.16%. This indicates that LQDI's price experiences larger fluctuations and is considered to be riskier than FLOT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.