QLC vs. LQD
QLC (FlexShares US Quality Large Cap Index Fund) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - QLC is a Large Cap Blend Equities fund tracking the Northern Trust Quality Large Cap Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, QLC returned 15.08%/yr vs 2.52%/yr for LQD. At a 0.19 correlation, their price movements are largely independent. QLC charges 0.25%/yr vs 0.15%/yr for LQD.
Performance
QLC vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, QLC achieves a 11.97% return, which is significantly higher than LQD's 0.80% return. Over the past 10 years, QLC has outperformed LQD with an annualized return of 15.08%, while LQD has yielded a comparatively lower 2.52% annualized return.
QLC
- 1D
- 1.63%
- 1M
- 3.02%
- YTD
- 11.97%
- 6M
- 12.35%
- 1Y
- 33.81%
- 3Y*
- 24.25%
- 5Y*
- 15.50%
- 10Y*
- 15.08%
LQD
- 1D
- -0.02%
- 1M
- 1.43%
- YTD
- 0.80%
- 6M
- 1.10%
- 1Y
- 5.78%
- 3Y*
- 4.95%
- 5Y*
- -0.10%
- 10Y*
- 2.52%
QLC vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
QLC FlexShares US Quality Large Cap Index Fund | 11.97% | 23.26% | 26.71% | 26.02% | -17.21% | 28.46% | 13.64% | 24.51% | -8.12% | 21.73% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.80% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between QLC and LQD is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.42 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.33 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.31 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.20 |
Correlation (All Time) Calculated using the full available price history since Sep 24, 2015 | 0.19 |
Over the past year, QLC and LQD have become more correlated (0.42) than their long-term average of 0.19, meaning their price movements have been converging.
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Return for Risk
QLC vs. LQD — Risk / Return Rank
QLC
LQD
QLC vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares US Quality Large Cap Index Fund (QLC) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD). 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.
| QLC | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.54 | ||
| Sortino ratioReturn per unit of downside risk | +1.97 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.19 | +0.28 |
| Calmar ratioReturn relative to maximum drawdown | 3.84 | 1.74 | +2.10 |
| Martin ratioReturn relative to average drawdown | 17.56 | 4.88 | +12.67 |
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Drawdowns
QLC vs. LQD - Drawdown Comparison
The maximum QLC drawdown since its inception was -35.86%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for QLC and LQD.
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Drawdown Indicators
| QLC | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.86% | -24.95% | -10.91% |
Max Drawdown (1Y)Largest decline over 1 year | -8.84% | -3.34% | -5.50% |
Max Drawdown (3Y)Largest decline over 3 years | -18.49% | -8.43% | -10.06% |
Max Drawdown (5Y)Largest decline over 5 years | -23.81% | -24.95% | +1.14% |
Max Drawdown (10Y)Largest decline over 10 years | -35.86% | -24.95% | -10.91% |
Current DrawdownCurrent decline from peak | -0.22% | -3.39% | +3.17% |
Average DrawdownAverage peak-to-trough decline | -4.53% | -3.99% | -0.54% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.93% | 1.19% | +0.74% |
Volatility
QLC vs. LQD - Volatility Comparison
FlexShares US Quality Large Cap Index Fund (QLC) has a higher volatility of 4.70% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.78%. This indicates that QLC's price experiences larger fluctuations and is considered to be riskier than LQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| QLC | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.70% | 1.78% | +2.92% |
Volatility (6M)Calculated over the trailing 6-month period | 10.29% | 4.02% | +6.27% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.90% | 5.32% | +7.58% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.92% | 8.65% | +8.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.46% | 8.69% | +9.77% |
QLC vs. LQD - Expense Ratio Comparison
QLC has a 0.25% expense ratio, which is higher than LQD'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
QLC vs. LQD - Dividend Comparison
QLC's dividend yield for the trailing twelve months is around 0.87%, less than LQD's 4.55% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.55% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
QLC FlexShares US Quality Large Cap Index Fund | 0.87% | 0.94% | 1.03% | 1.26% | 1.46% | 0.96% | 1.40% | 1.91% | 1.82% | 1.29% | 1.80% | 0.64% |
Frequently Asked Questions
QLC and LQD have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
QLC has higher volatility (4.70%) compared to LQD (1.78%). In terms of maximum drawdown, QLC dropped -35.86% vs LQD's -24.95%.
On 10-year performance, QLC leads with 15.08% vs 2.52% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, LQD has been the lower-risk option at 1.78%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, QLC has performed better with a 15.08% return vs 2.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LQD is cheaper with a 0.15% expense ratio, compared with 0.25% for QLC.
LQD has the higher dividend yield at 4.55%, compared with 0.87% for QLC.
QLC is categorized as Large Cap Blend Equities, while LQD is Corporate Bonds. QLC tracks Northern Trust Quality Large Cap Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. They also come from different issuers: Northern Trust and iShares. Their fees differ too: 0.25% for QLC and 0.15% for LQD.
QLC currently has the higher Sharpe Ratio (2.64 vs 1.09), 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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