LQDS.L vs. XZBU.L

Last updated Jun 5, 2026

LQDS.L (iShares USD Corporate Bond UCITS ETF (Dist)) and XZBU.L (Xtrackers USD Corporate Bond SRI PAB UCITS ETF 1C) are both Corporate Bonds funds tracking the Bloomberg US Corp Bond TR USD, from iShares and Xtrackers respectively. Both are passively managed. With a 0.97 correlation, they move nearly in lockstep. LQDS.L charges 0.20%/yr vs 0.16%/yr for XZBU.L.

Performance

LQDS.L vs. XZBU.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in iShares USD Corporate Bond UCITS ETF (Dist) (LQDS.L) and Xtrackers USD Corporate Bond SRI PAB UCITS ETF 1C (XZBU.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

LQDS.L is traded in GBp, while XZBU.L is traded in GBP. To make them comparable, the XZBU.L values have been converted to GBp using the latest available exchange rates.

Returns By Period

LQDS.L

• 1D: 0.29%
• 1M: 1.35%
• YTD: 0.31%
• 6M: -0.20%
• 1Y: 6.56%
• 3Y*: 2.28%
• 5Y*: 1.06%
• 10Y*: —

XZBU.L

• 1D: —
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

LQDS.L vs. XZBU.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
LQDS.L iShares USD Corporate Bond UCITS ETF (Dist)	0.31%	0.56%	2.80%	3.05%	-7.97%	-0.39%	-2.64%
XZBU.L Xtrackers USD Corporate Bond SRI PAB UCITS ETF 1C	34.27%	0.67%	2.68%	2.98%	-8.73%	-0.87%	-2.84%

Correlation

The correlation between LQDS.L and XZBU.L is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Sep 11, 2020	0.97

The correlation between LQDS.L and XZBU.L has been stable across timeframes, ranging from 0.90 to 0.97 - a consistent structural relationship.

Return for Risk

LQDS.L vs. XZBU.L — Risk / Return Rank

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

LQDS.L

LQDS.L Risk / Return Rank: 27
LQDS.L Sharpe Ratio Rank: 28
LQDS.L Sortino Ratio Rank: 28
LQDS.L Omega Ratio Rank: 26
LQDS.L Calmar Ratio Rank: 28
LQDS.L Martin Ratio Rank: 25

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.

LQDS.L vs. XZBU.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares USD Corporate Bond UCITS ETF (Dist) (LQDS.L) and Xtrackers USD Corporate Bond SRI PAB UCITS ETF 1C (XZBU.L). 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.

	LQDS.L	XZBU.L	Difference
Sharpe ratio: Return per unit of total volatility	0.99	—	—
Sortino ratio: Return per unit of downside risk	1.50	—	—
Omega ratio: Gain probability vs. loss probability	1.17	—	—
Calmar ratio: Return relative to maximum drawdown	1.33	—	—
Martin ratio: Return relative to average drawdown	3.22	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	LQDS.L	XZBU.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.99	—	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.11	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	—	—

Drawdowns

Drawdown Indicators

	LQDS.L	XZBU.L	Difference
Max Drawdown Largest peak-to-trough decline	-19.03%	—	—
Max Drawdown (1Y) Largest decline over 1 year	-4.90%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-8.84%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-15.27%	—	—
Current Drawdown Current decline from peak	-8.43%	—	—
Average Drawdown Average peak-to-trough decline	-8.64%	—	—
Ulcer Index Depth and duration of drawdowns from previous peaks	2.03%	—	—

Volatility

Volatility by Period

	LQDS.L	XZBU.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.71%	—	—
Volatility (6M) Calculated over the trailing 6-month period	4.86%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	6.60%	—	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.43%	—	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.10%	—	—

LQDS.L vs. XZBU.L - Expense Ratio Comparison

LQDS.L has a 0.20% expense ratio, which is higher than XZBU.L's 0.16% 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

LQDS.L vs. XZBU.L - Dividend Comparison

LQDS.L's dividend yield for the trailing twelve months is around 4.93%, while XZBU.L has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
LQDS.L iShares USD Corporate Bond UCITS ETF (Dist)	4.93%	4.92%	4.91%	4.66%	3.68%	2.63%	2.95%	3.51%	3.57%	3.39%	1.64%
XZBU.L Xtrackers USD Corporate Bond SRI PAB UCITS ETF 1C	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LQDS.L and XZBU.L in my portfolio?

With a correlation of 0.90, LQDS.L and XZBU.L move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, LQDS.L or XZBU.L?

On fees, XZBU.L is cheaper at 0.16% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, LQDS.L or XZBU.L?

XZBU.L is cheaper with a 0.16% expense ratio, compared with 0.20% for LQDS.L.

What is the main difference between LQDS.L and XZBU.L?

Both ETFs track Bloomberg US Corp Bond TR USD. They also come from different issuers: iShares and Xtrackers. Their fees differ too: 0.20% for LQDS.L and 0.16% for XZBU.L.