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TLT vs. LQD
Performance
Return for Risk
Drawdowns
Volatility
Dividends

TLT vs. LQD

Last updated Jun 6, 2026

TLT (iShares 20+ Year Treasury Bond ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, TLT returned -1.63%/yr vs 2.49%/yr for LQD. A 0.74 correlation means they provide meaningful diversification when combined. Both charge a 0.15% expense ratio.

Performance

TLT vs. LQD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 20+ Year Treasury Bond ETF (TLT) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, TLT achieves a -0.56% return, which is significantly lower than LQD's 0.04% return. Over the past 10 years, TLT has underperformed LQD with an annualized return of -1.63%, while LQD has yielded a comparatively higher 2.49% annualized return.

TLT

1D
-0.51%
1M
-0.80%
YTD
-0.56%
6M
-1.32%
1Y
2.88%
3Y*
-2.03%
5Y*
-6.37%
10Y*
-1.63%

LQD

1D
-0.62%
1M
-0.56%
YTD
0.04%
6M
-0.17%
1Y
5.20%
3Y*
4.81%
5Y*
-0.13%
10Y*
2.49%
*Multi-year figures are annualized to reflect compound growth (CAGR)

TLT vs. LQD - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
TLT
iShares 20+ Year Treasury Bond ETF		-0.56%4.25%-8.05%2.77%-31.23%-4.60%18.15%14.12%-1.61%9.18%
LQD
iShares iBoxx $ Investment Grade Corporate Bond ETF		0.04%7.90%0.86%9.40%-17.92%-1.84%10.97%17.37%-3.79%7.06%

Correlation

The correlation between TLT and LQD 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

0.92

Correlation (5Y)
Calculated over the trailing 5-year period

0.88

Correlation (10Y)
Calculated over the trailing 10-year period

0.81

Correlation (All Time)
Calculated using the full available price history since Jul 29, 2002

0.74

The correlation between TLT and LQD shifts across timeframes, from 0.74 (all time) to 0.92 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares 20+ Year Treasury Bond ETF

iShares iBoxx $ Investment Grade Corporate Bond ETF

Often compared with TLT:
TLT vs. SPYTLT vs. IEFTLT vs. TMFTLT vs. BNDTLT vs. VGLTTLT vs. TLTWTLT vs. EDV
Often compared with LQD:
LQD vs. HYGLQD vs. VCITLQD vs. IEFLQD vs. LQDWLQD vs. VCLTLQD vs. LQDHLQD vs. IGSB

Return for Risk

TLT vs. LQD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
TLT
TLT Risk / Return Rank: 1313
Overall Rank
TLT Sharpe Ratio Rank: 1414
Sharpe Ratio Rank
TLT Sortino Ratio Rank: 1313
Sortino Ratio Rank
TLT Omega Ratio Rank: 1212
Omega Ratio Rank
TLT Calmar Ratio Rank: 1414
Calmar Ratio Rank
TLT Martin Ratio Rank: 1414
Martin Ratio Rank
LQD
LQD Risk / Return Rank: 2929
Overall Rank
LQD Sharpe Ratio Rank: 2828
Sharpe Ratio Rank
LQD Sortino Ratio Rank: 2727
Sortino Ratio Rank
LQD Omega Ratio Rank: 2525
Omega Ratio Rank
LQD Calmar Ratio Rank: 3333
Calmar Ratio Rank
LQD Martin Ratio Rank: 3131
Martin Ratio Rank
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.

TLT vs. LQD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) 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.

TLTLQDDifference
Sharpe ratioReturn per unit of total volatility
0.30
0.98

-0.68

Sortino ratioReturn per unit of downside risk
0.50
1.43

-0.93

Omega ratioGain probability vs. loss probability

1.06

1.17

-0.11

Calmar ratioReturn relative to maximum drawdown

0.38

1.56

-1.18

Martin ratioReturn relative to average drawdown

0.94

4.45

-3.51

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TLT vs. LQD - Sharpe Ratio Comparison

The current TLT Sharpe Ratio is 0.30, which is lower than the LQD Sharpe Ratio of 0.98. The chart below compares the historical Sharpe Ratios of TLT and LQD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

TLTLQDDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.30

0.98

-0.68

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.40

-0.01

-0.39

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

-0.11

0.29

-0.40

Sharpe Ratio (All Time)

Calculated using the full available price history

0.25

0.54

-0.28

Drawdowns

TLT vs. LQD - Drawdown Comparison

The maximum TLT drawdown since its inception was -48.35%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for TLT and LQD.

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Drawdown Indicators

TLTLQDDifference

Max Drawdown

Largest peak-to-trough decline

-48.35%

-24.95%

-23.40%

Max Drawdown (1Y)

Largest decline over 1 year

-7.58%

-3.34%

-4.24%

Max Drawdown (3Y)

Largest decline over 3 years

-19.18%

-8.43%

-10.75%

Max Drawdown (5Y)

Largest decline over 5 years

-43.70%

-24.95%

-18.75%

Max Drawdown (10Y)

Largest decline over 10 years

-48.35%

-24.95%

-23.40%

Current Drawdown

Current decline from peak

-40.61%

-4.12%

-36.49%

Average Drawdown

Average peak-to-trough decline

-13.82%

-3.99%

-9.83%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.07%

1.17%

+1.90%

Volatility

TLT vs. LQD - Volatility Comparison

iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.65% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.67%. This indicates that TLT'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

TLTLQDDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.65%

1.67%

+0.98%

Volatility (6M)

Calculated over the trailing 6-month period

6.51%

3.95%

+2.56%

Volatility (1Y)

Calculated over the trailing 1-year period

9.66%

5.36%

+4.30%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.85%

8.65%

+7.20%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.90%

8.68%

+6.22%

TLT vs. LQD - Expense Ratio Comparison

Both TLT and LQD have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

TLT vs. LQD - Dividend Comparison

TLT's dividend yield for the trailing twelve months is around 4.60%, which matches LQD's 4.59% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
TLT
iShares 20+ Year Treasury Bond ETF		4.60%4.43%4.30%3.38%2.67%1.50%1.50%2.27%2.63%2.43%2.60%2.61%

Frequently Asked Questions

TLT and LQD have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

TLT has higher volatility (2.65%) compared to LQD (1.67%). In terms of maximum drawdown, TLT dropped -48.35% vs LQD's -24.95%.

On 10-year performance, LQD leads with 2.49% vs -1.63% for TLT. Both ETFs have the same 0.15% expense ratio. On volatility, LQD has been the lower-risk option at 1.67%. 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 2.49% return vs -1.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

TLT and LQD have the same expense ratio: 0.15% per year.

TLT and LQD have nearly identical dividend yields, around 4.60%.

TLT is categorized as Government Bonds, while LQD is Corporate Bonds. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while LQD tracks iBoxx $ Liquid Investment Grade Index.

LQD currently has the higher Sharpe Ratio (0.98 vs 0.30), 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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