SCHR vs. LQD
SCHR (Schwab Intermediate-Term U.S. Treasury ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - SCHR is a Government Bonds fund tracking the Bloomberg US Treasury 3-10 Year Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, SCHR returned 1.15%/yr vs 2.41%/yr for LQD. A 0.76 correlation means they provide meaningful diversification when combined. SCHR charges 0.05%/yr vs 0.15%/yr for LQD.
Performance
SCHR vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, SCHR achieves a -0.76% return, which is significantly lower than LQD's -0.06% return. Over the past 10 years, SCHR has underperformed LQD with an annualized return of 1.15%, while LQD has yielded a comparatively higher 2.41% annualized return.
SCHR
- 1D
- -0.04%
- 1M
- -0.88%
- YTD
- -0.76%
- 6M
- -0.40%
- 1Y
- 3.59%
- 3Y*
- 3.39%
- 5Y*
- -0.07%
- 10Y*
- 1.15%
LQD
- 1D
- -0.10%
- 1M
- -0.67%
- YTD
- -0.06%
- 6M
- -0.06%
- 1Y
- 5.73%
- 3Y*
- 4.95%
- 5Y*
- -0.28%
- 10Y*
- 2.41%
SCHR vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SCHR Schwab Intermediate-Term U.S. Treasury ETF | -0.76% | 7.33% | 1.42% | 4.27% | -10.58% | -2.62% | 7.72% | 6.18% | 1.46% | 1.59% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.06% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between SCHR and LQD is 0.83, 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 | 0.83 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.88 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.85 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.78 |
Correlation (All Time) Calculated using the full available price history since Aug 6, 2010 | 0.76 |
The correlation between SCHR and LQD shifts across timeframes, from 0.76 (all time) to 0.88 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
SCHR vs. LQD — Risk / Return Rank
SCHR
LQD
SCHR vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Intermediate-Term U.S. Treasury ETF (SCHR) 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.
| SCHR | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.01 | ||
| Sortino ratioReturn per unit of downside risk | +0.05 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.19 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 1.29 | 1.72 | -0.43 |
| Martin ratioReturn relative to average drawdown | 3.75 | 4.88 | -1.13 |
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
| SCHR | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.07 | 1.08 | -0.01 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.01 | -0.03 | +0.02 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.26 | 0.28 | -0.02 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.44 | 0.54 | -0.10 |
Drawdowns
SCHR vs. LQD - Drawdown Comparison
The maximum SCHR drawdown since its inception was -16.11%, smaller than the maximum LQD drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for SCHR and LQD.
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Drawdown Indicators
| SCHR | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.11% | -24.95% | +8.84% |
Max Drawdown (1Y)Largest decline over 1 year | -2.79% | -3.34% | +0.55% |
Max Drawdown (3Y)Largest decline over 3 years | -4.35% | -8.43% | +4.08% |
Max Drawdown (5Y)Largest decline over 5 years | -15.07% | -24.95% | +9.88% |
Max Drawdown (10Y)Largest decline over 10 years | -16.11% | -24.95% | +8.84% |
Current DrawdownCurrent decline from peak | -2.69% | -4.21% | +1.52% |
Average DrawdownAverage peak-to-trough decline | -3.64% | -3.99% | +0.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.96% | 1.18% | -0.22% |
Volatility
SCHR vs. LQD - Volatility Comparison
The current volatility for Schwab Intermediate-Term U.S. Treasury ETF (SCHR) is 1.04%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 1.62%. This indicates that SCHR experiences smaller price fluctuations and is considered to be less risky 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
| SCHR | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.04% | 1.62% | -0.58% |
Volatility (6M)Calculated over the trailing 6-month period | 2.36% | 3.94% | -1.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.36% | 5.32% | -1.96% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.38% | 8.65% | -3.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.47% | 8.68% | -4.21% |
SCHR vs. LQD - Expense Ratio Comparison
SCHR has a 0.05% expense ratio, which is lower than LQD's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
SCHR vs. LQD - Dividend Comparison
SCHR's dividend yield for the trailing twelve months is around 3.93%, less than LQD's 4.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.59% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
SCHR Schwab Intermediate-Term U.S. Treasury ETF | 3.93% | 3.85% | 3.77% | 3.16% | 2.02% | 1.00% | 1.62% | 2.31% | 2.11% | 1.65% | 1.45% | 1.56% |
Frequently Asked Questions
SCHR and LQD have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQD has higher volatility (1.62%) compared to SCHR (1.04%). In terms of maximum drawdown, SCHR dropped -16.11% vs LQD's -24.95%.
On 10-year performance, LQD leads with 2.41% vs 1.15% for SCHR. On fees, SCHR is cheaper at 0.05% per year. On volatility, SCHR has been the lower-risk option at 1.04%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, LQD has performed better with a 2.41% return vs 1.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHR is cheaper with a 0.05% expense ratio, compared with 0.15% for LQD.
LQD has the higher dividend yield at 4.59%, compared with 3.93% for SCHR.
SCHR is categorized as Government Bonds, while LQD is Corporate Bonds. SCHR tracks Bloomberg US Treasury 3-10 Year Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. They also come from different issuers: Charles Schwab and iShares. Their fees differ too: 0.05% for SCHR and 0.15% for LQD.
LQD currently has the higher Sharpe Ratio (1.08 vs 1.07), 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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