LQDW vs. HYGW
LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) and HYGW (iShares High Yield Corporate Bond Buywrite Strategy ETF) are both exchange-traded funds - LQDW is a Corporate Bonds fund tracking the CBOE LQD BuyWrite Index, while HYGW is a High Yield Bonds fund tracking the Cboe HYG BuyWrite Index. Both are passively managed. Over the past 3 years, LQDW returned 3.70%/yr vs 5.93%/yr for HYGW. A 0.55 correlation means they provide meaningful diversification when combined. LQDW charges 0.34%/yr vs 0.69%/yr for HYGW.
Performance
LQDW vs. HYGW - Performance Comparison
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Returns By Period
In the year-to-date period, LQDW achieves a 1.88% return, which is significantly lower than HYGW's 2.25% return.
LQDW
- 1D
- 0.18%
- 1M
- 1.36%
- YTD
- 1.88%
- 6M
- 2.02%
- 1Y
- 6.49%
- 3Y*
- 3.70%
- 5Y*
- —
- 10Y*
- —
HYGW
- 1D
- 0.00%
- 1M
- 0.82%
- YTD
- 2.25%
- 6M
- 2.52%
- 1Y
- 6.59%
- 3Y*
- 5.93%
- 5Y*
- —
- 10Y*
- —
LQDW vs. HYGW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 1.88% | 9.05% | 2.60% | 3.99% | -6.78% |
HYGW iShares High Yield Corporate Bond Buywrite Strategy ETF | 2.25% | 6.19% | 6.99% | 7.31% | -0.39% |
Correlation
The correlation between LQDW and HYGW is 0.53, 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 | 0.53 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Aug 22, 2022 | 0.55 |
The correlation between LQDW and HYGW has been stable across timeframes, ranging from 0.53 to 0.55 - a consistent structural relationship.
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Return for Risk
LQDW vs. HYGW — Risk / Return Rank
LQDW
HYGW
LQDW vs. HYGW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) and iShares High Yield Corporate Bond Buywrite Strategy ETF (HYGW). 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.
| LQDW | HYGW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.51 | ||
| Sortino ratioReturn per unit of downside risk | -0.84 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.49 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 2.52 | 3.64 | -1.12 |
| Martin ratioReturn relative to average drawdown | 9.34 | 16.58 | -7.24 |
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Drawdowns
LQDW vs. HYGW - Drawdown Comparison
The maximum LQDW drawdown since its inception was -9.20%, which is greater than HYGW's maximum drawdown of -5.49%. Use the drawdown chart below to compare losses from any high point for LQDW and HYGW.
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Drawdown Indicators
| LQDW | HYGW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.20% | -5.49% | -3.71% |
Max Drawdown (1Y)Largest decline over 1 year | -2.59% | -1.82% | -0.77% |
Max Drawdown (3Y)Largest decline over 3 years | -6.74% | -3.66% | -3.08% |
Current DrawdownCurrent decline from peak | -0.04% | 0.00% | -0.04% |
Average DrawdownAverage peak-to-trough decline | -2.32% | -0.60% | -1.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.70% | 0.40% | +0.30% |
Volatility
LQDW vs. HYGW - Volatility Comparison
iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) has a higher volatility of 1.00% compared to iShares High Yield Corporate Bond Buywrite Strategy ETF (HYGW) at 0.77%. This indicates that LQDW's price experiences larger fluctuations and is considered to be riskier than HYGW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LQDW | HYGW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.00% | 0.77% | +0.23% |
Volatility (6M)Calculated over the trailing 6-month period | 3.12% | 2.23% | +0.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.62% | 2.86% | +0.76% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.47% | 4.66% | +0.81% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.47% | 4.66% | +0.81% |
LQDW vs. HYGW - Expense Ratio Comparison
LQDW has a 0.34% expense ratio, which is lower than HYGW's 0.69% expense ratio.
Dividends
LQDW vs. HYGW - Dividend Comparison
LQDW's dividend yield for the trailing twelve months is around 12.49%, more than HYGW's 11.50% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
HYGW iShares High Yield Corporate Bond Buywrite Strategy ETF | 11.50% | 12.53% | 12.30% | 15.98% | 8.71% |
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 12.49% | 16.02% | 15.74% | 19.28% | 8.85% |
Frequently Asked Questions
LQDW and HYGW have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQDW has higher volatility (1.00%) compared to HYGW (0.77%). In terms of maximum drawdown, LQDW dropped -9.20% vs HYGW's -5.49%.
On 3-year performance, HYGW leads with 5.93% vs 3.70% for LQDW. On fees, LQDW is cheaper at 0.34% per year. On volatility, HYGW has been the lower-risk option at 0.77%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, HYGW has performed better with a 5.93% return vs 3.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LQDW is cheaper with a 0.34% expense ratio, compared with 0.69% for HYGW.
LQDW has the higher dividend yield at 12.49%, compared with 11.50% for HYGW.
LQDW is categorized as Corporate Bonds, while HYGW is High Yield Bonds. LQDW tracks CBOE LQD BuyWrite Index, while HYGW tracks Cboe HYG BuyWrite Index. Their fees differ too: 0.34% for LQDW and 0.69% for HYGW.
HYGW currently has the higher Sharpe Ratio (2.31 vs 1.80), 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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