LQDW vs. IBDR

Last updated Jun 4, 2026

LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) and IBDR (iShares iBonds Dec 2026 Term Corporate ETF) are both Corporate Bonds funds from iShares - LQDW tracks the CBOE LQD BuyWrite Index while IBDR tracks the Barclays December 2026 Maturity Corporate Index. Both are passively managed. Over the past 3 years, LQDW returned 3.79%/yr vs 5.07%/yr for IBDR. A 0.53 correlation means they provide meaningful diversification when combined. LQDW charges 0.34%/yr vs 0.10%/yr for IBDR.

Performance

LQDW vs. IBDR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) and iShares iBonds Dec 2026 Term Corporate ETF (IBDR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LQDW achieves a 1.25% return, which is significantly lower than IBDR's 1.44% return.

LQDW

• 1D: -0.20%
• 1M: 0.83%
• YTD: 1.25%
• 6M: 1.65%
• 1Y: 6.49%
• 3Y*: 3.79%
• 5Y*: —
• 10Y*: —

IBDR

• 1D: -0.04%
• 1M: 0.25%
• YTD: 1.44%
• 6M: 1.80%
• 1Y: 4.38%
• 3Y*: 5.07%
• 5Y*: 1.50%
• 10Y*: —

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

LQDW vs. IBDR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	1.25%	9.05%	2.60%	3.99%	-6.78%
IBDR iShares iBonds Dec 2026 Term Corporate ETF	1.44%	4.99%	4.98%	5.96%	-1.26%

Correlation

The correlation between LQDW and IBDR is 0.03, 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	0.03
Correlation (3Y) Calculated over the trailing 3-year period	0.44
Correlation (All Time) Calculated using the full available price history since Aug 23, 2022	0.53

Over the past year, the correlation between LQDW and IBDR has dropped to 0.03 - well below their long-term average of 0.53, suggesting their price drivers have been diverging.

Return for Risk

LQDW vs. IBDR — Risk / Return Rank

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

LQDW

LQDW Risk / Return Rank: 54
LQDW Sharpe Ratio Rank: 53
LQDW Sortino Ratio Rank: 53
LQDW Omega Ratio Rank: 61
LQDW Calmar Ratio Rank: 50
LQDW Martin Ratio Rank: 54

IBDR

IBDR Risk / Return Rank: 99
IBDR Sharpe Ratio Rank: 99
IBDR Sortino Ratio Rank: 99
IBDR Omega Ratio Rank: 99
IBDR Calmar Ratio Rank: 99
IBDR 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.

LQDW vs. IBDR - 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 iBonds Dec 2026 Term Corporate ETF (IBDR). 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.

	LQDW	IBDR	Difference
Sharpe ratio Return per unit of total volatility	1.85	6.93	-5.08
Sortino ratio Return per unit of downside risk	2.62	14.59	-11.97
Omega ratio Gain probability vs. loss probability	1.38	3.40	-2.03
Calmar ratio Return relative to maximum drawdown	2.51	53.28	-50.77
Martin ratio Return relative to average drawdown	9.39	185.24	-175.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LQDW vs. IBDR - Sharpe Ratio Comparison

The current LQDW Sharpe Ratio is 1.85, which is lower than the IBDR Sharpe Ratio of 6.93. The chart below compares the historical Sharpe Ratios of LQDW and IBDR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LQDW	IBDR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.85	6.93	-5.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.44	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.61	-0.15

Drawdowns

LQDW vs. IBDR - Drawdown Comparison

The maximum LQDW drawdown since its inception was -9.20%, smaller than the maximum IBDR drawdown of -16.06%. Use the drawdown chart below to compare losses from any high point for LQDW and IBDR.

Drawdown Indicators

	LQDW	IBDR	Difference
Max Drawdown Largest peak-to-trough decline	-9.20%	-16.06%	+6.86%
Max Drawdown (1Y) Largest decline over 1 year	-2.59%	-0.08%	-2.51%
Max Drawdown (3Y) Largest decline over 3 years	-6.74%	-1.08%	-5.66%
Max Drawdown (5Y) Largest decline over 5 years	—	-13.13%	—
Current Drawdown Current decline from peak	-0.35%	-0.04%	-0.31%
Average Drawdown Average peak-to-trough decline	-2.35%	-2.84%	+0.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.69%	0.02%	+0.67%

Volatility

LQDW vs. IBDR - Volatility Comparison

iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) has a higher volatility of 1.46% compared to iShares iBonds Dec 2026 Term Corporate ETF (IBDR) at 0.15%. This indicates that LQDW's price experiences larger fluctuations and is considered to be riskier than IBDR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LQDW	IBDR	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.46%	0.15%	+1.31%
Volatility (6M) Calculated over the trailing 6-month period	3.02%	0.34%	+2.68%
Volatility (1Y) Calculated over the trailing 1-year period	3.53%	0.64%	+2.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.49%	3.40%	+2.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.49%	4.86%	+0.63%

LQDW vs. IBDR - Expense Ratio Comparison

LQDW has a 0.34% expense ratio, which is higher than IBDR's 0.10% expense ratio.

Dividends

LQDW vs. IBDR - Dividend Comparison

LQDW's dividend yield for the trailing twelve months is around 12.57%, more than IBDR's 4.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
IBDR iShares iBonds Dec 2026 Term Corporate ETF	4.13%	4.20%	4.13%	3.41%	2.44%	2.11%	2.61%	3.25%	3.56%	3.22%	0.86%
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	12.57%	16.02%	15.74%	19.28%	8.85%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LQDW and IBDR in my portfolio?

LQDW and IBDR have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LQDW or IBDR?

LQDW has higher volatility (1.46%) compared to IBDR (0.15%). In terms of maximum drawdown, LQDW dropped -9.20% vs IBDR's -16.06%.

Which ETF is better, LQDW or IBDR?

On 3-year performance, IBDR leads with 5.07% vs 3.79% for LQDW. On fees, IBDR is cheaper at 0.10% per year. On volatility, IBDR has been the lower-risk option at 0.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LQDW or IBDR?

Over the 3-year period, IBDR has performed better with a 5.07% return vs 3.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LQDW or IBDR?

IBDR is cheaper with a 0.10% expense ratio, compared with 0.34% for LQDW.

Which ETF pays a higher dividend yield, LQDW or IBDR?

LQDW has the higher dividend yield at 12.57%, compared with 4.13% for IBDR.

What is the main difference between LQDW and IBDR?

LQDW tracks CBOE LQD BuyWrite Index, while IBDR tracks Barclays December 2026 Maturity Corporate Index. Their fees differ too: 0.34% for LQDW and 0.10% for IBDR.

Which has better risk-adjusted returns?

IBDR currently has the higher Sharpe Ratio (6.93 vs 1.85), 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.