LQDI vs. TLT
LQDI (iShares Inflation Hedged Corporate Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - LQDI is a Inflation-Protected Bonds fund actively managed by iShares, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. LQDI is actively managed, while TLT is passively managed. Over the past 5 years, LQDI returned 1.93%/yr vs -6.31%/yr for TLT. A 0.58 correlation means they provide meaningful diversification when combined. LQDI charges 0.18%/yr vs 0.15%/yr for TLT.
Performance
LQDI vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, LQDI achieves a 1.72% return, which is significantly higher than TLT's -0.27% return.
LQDI
- 1D
- -0.39%
- 1M
- 0.66%
- YTD
- 1.72%
- 6M
- 1.56%
- 1Y
- 7.30%
- 3Y*
- 5.84%
- 5Y*
- 1.93%
- 10Y*
- —
TLT
- 1D
- -0.40%
- 1M
- 0.81%
- YTD
- -0.27%
- 6M
- -2.02%
- 1Y
- 4.93%
- 3Y*
- -1.80%
- 5Y*
- -6.31%
- 10Y*
- -1.66%
LQDI vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
LQDI iShares Inflation Hedged Corporate Bond ETF | 1.72% | 8.84% | 1.48% | 8.85% | -15.33% | 7.53% | 11.82% | 15.83% | -2.07% |
TLT iShares 20+ Year Treasury Bond ETF | -0.27% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | 4.07% |
Correlation
The correlation between LQDI and TLT is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.61 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.73 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.66 |
Correlation (All Time) Calculated using the full available price history since May 11, 2018 | 0.58 |
The correlation between LQDI and TLT shifts across timeframes, from 0.58 (all time) to 0.73 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
LQDI vs. TLT — Risk / Return Rank
LQDI
TLT
LQDI vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Inflation Hedged Corporate Bond ETF (LQDI) 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.
| LQDI | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.97 | ||
| Sortino ratioReturn per unit of downside risk | +1.36 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.09 | +0.17 |
| Calmar ratioReturn relative to maximum drawdown | 2.54 | 0.65 | +1.89 |
| Martin ratioReturn relative to average drawdown | 7.71 | 1.63 | +6.08 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| LQDI | TLT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.47 | 0.51 | +0.97 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.24 | -0.40 | +0.64 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | -0.11 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.40 | 0.26 | +0.15 |
Drawdowns
LQDI vs. TLT - Drawdown Comparison
The maximum LQDI drawdown since its inception was -28.99%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for LQDI and TLT.
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Drawdown Indicators
| LQDI | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -28.99% | -48.35% | +19.36% |
Max Drawdown (1Y)Largest decline over 1 year | -2.88% | -7.58% | +4.70% |
Max Drawdown (3Y)Largest decline over 3 years | -6.27% | -19.18% | +12.91% |
Max Drawdown (5Y)Largest decline over 5 years | -20.67% | -43.70% | +23.03% |
Max Drawdown (10Y)Largest decline over 10 years | — | -48.35% | — |
Current DrawdownCurrent decline from peak | -0.39% | -40.44% | +40.05% |
Average DrawdownAverage peak-to-trough decline | -5.25% | -13.82% | +8.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.95% | 3.04% | -2.09% |
Volatility
LQDI vs. TLT - Volatility Comparison
The current volatility for iShares Inflation Hedged Corporate Bond ETF (LQDI) is 1.20%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.76%. This indicates that LQDI 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
| LQDI | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.20% | 2.76% | -1.56% |
Volatility (6M)Calculated over the trailing 6-month period | 3.44% | 6.50% | -3.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.97% | 9.77% | -4.80% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.18% | 15.87% | -7.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.84% | 14.91% | -4.07% |
LQDI vs. TLT - Expense Ratio Comparison
LQDI has a 0.18% expense ratio, which is higher than TLT's 0.15% 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%.
Dividends
LQDI vs. TLT - Dividend Comparison
LQDI's dividend yield for the trailing twelve months is around 4.58%, which matches TLT's 4.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQDI iShares Inflation Hedged Corporate Bond ETF | 4.58% | 4.46% | 4.65% | 3.98% | 3.27% | 2.42% | 2.34% | 3.26% | 2.53% | 0.00% | 0.00% | 0.00% |
TLT iShares 20+ Year Treasury Bond ETF | 4.59% | 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
LQDI and TLT have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.76%) compared to LQDI (1.20%). In terms of maximum drawdown, LQDI dropped -28.99% vs TLT's -48.35%.
On 5-year performance, LQDI leads with 1.93% vs -6.31% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, LQDI has been the lower-risk option at 1.20%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, LQDI has performed better with a 1.93% return vs -6.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT is cheaper with a 0.15% expense ratio, compared with 0.18% for LQDI.
TLT has the higher dividend yield at 4.59%, compared with 4.58% for LQDI.
LQDI is categorized as Inflation-Protected Bonds, while TLT is Government Bonds. Their fees differ too: 0.18% for LQDI and 0.15% for TLT.
LQDI currently has the higher Sharpe Ratio (1.47 vs 0.51), 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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