TQQQ vs. LQD
TQQQ (ProShares UltraPro QQQ) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - TQQQ is a Leveraged Equities fund tracking the NASDAQ-100 Index (300%), while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, TQQQ returned 43.95%/yr vs 2.41%/yr for LQD. At a 0.11 correlation, their price movements are largely independent. TQQQ charges 0.95%/yr vs 0.15%/yr for LQD.
Performance
TQQQ vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, TQQQ achieves a 44.91% return, which is significantly higher than LQD's -0.06% return. Over the past 10 years, TQQQ has outperformed LQD with an annualized return of 43.95%, while LQD has yielded a comparatively lower 2.41% annualized return.
TQQQ
- 1D
- 4.41%
- 1M
- -0.01%
- YTD
- 44.91%
- 6M
- 37.12%
- 1Y
- 106.99%
- 3Y*
- 62.78%
- 5Y*
- 24.89%
- 10Y*
- 43.95%
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%
TQQQ vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TQQQ ProShares UltraPro QQQ | 44.91% | 34.35% | 58.27% | 198.04% | -79.09% | 82.98% | 110.05% | 133.84% | -19.79% | 118.06% |
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 TQQQ and LQD is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.34 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.30 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.24 |
Correlation (All Time) Calculated using the full available price history since Feb 11, 2010 | 0.11 |
Over the past year, TQQQ and LQD have become more correlated (0.34) than their long-term average of 0.11, meaning their price movements have been converging.
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Return for Risk
TQQQ vs. LQD — Risk / Return Rank
TQQQ
LQD
TQQQ vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares UltraPro QQQ (TQQQ) 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.
| TQQQ | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.08 | ||
| Sortino ratioReturn per unit of downside risk | +0.87 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.19 | +0.15 |
| Calmar ratioReturn relative to maximum drawdown | 2.91 | 1.72 | +1.19 |
| Martin ratioReturn relative to average drawdown | 9.45 | 4.88 | +4.57 |
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
| TQQQ | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.16 | 1.08 | +1.08 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.37 | -0.03 | +0.41 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.67 | 0.28 | +0.39 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.72 | 0.54 | +0.18 |
Drawdowns
TQQQ vs. LQD - Drawdown Comparison
The maximum TQQQ drawdown since its inception was -81.66%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for TQQQ and LQD.
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Drawdown Indicators
| TQQQ | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -81.66% | -24.95% | -56.71% |
Max Drawdown (1Y)Largest decline over 1 year | -36.97% | -3.34% | -33.63% |
Max Drawdown (3Y)Largest decline over 3 years | -58.04% | -8.43% | -49.61% |
Max Drawdown (5Y)Largest decline over 5 years | -81.66% | -24.95% | -56.71% |
Max Drawdown (10Y)Largest decline over 10 years | -81.66% | -24.95% | -56.71% |
Current DrawdownCurrent decline from peak | -12.55% | -4.21% | -8.34% |
Average DrawdownAverage peak-to-trough decline | -18.52% | -3.99% | -14.53% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 11.36% | 1.18% | +10.18% |
Volatility
TQQQ vs. LQD - Volatility Comparison
ProShares UltraPro QQQ (TQQQ) has a higher volatility of 20.84% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.62%. This indicates that TQQQ'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
| TQQQ | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 20.84% | 1.62% | +19.22% |
Volatility (6M)Calculated over the trailing 6-month period | 39.54% | 3.94% | +35.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 49.94% | 5.32% | +44.62% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 66.84% | 8.65% | +58.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 66.15% | 8.68% | +57.47% |
TQQQ vs. LQD - Expense Ratio Comparison
TQQQ has a 0.95% expense ratio, which is higher than LQD's 0.15% expense ratio.
Dividends
TQQQ vs. LQD - Dividend Comparison
TQQQ's dividend yield for the trailing twelve months is around 0.41%, 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% |
TQQQ ProShares UltraPro QQQ | 0.41% | 0.65% | 1.27% | 1.26% | 0.57% | 0.00% | 0.00% | 0.06% | 0.11% | 0.00% | 0.00% | 0.01% |
Frequently Asked Questions
TQQQ and LQD have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TQQQ has higher volatility (20.84%) compared to LQD (1.62%). In terms of maximum drawdown, TQQQ dropped -81.66% vs LQD's -24.95%.
On 10-year performance, TQQQ leads with 43.95% vs 2.41% for LQD. On fees, LQD is cheaper at 0.15% per year. On volatility, LQD has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TQQQ has performed better with a 43.95% return vs 2.41%. 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 0.95% for TQQQ.
LQD has the higher dividend yield at 4.59%, compared with 0.41% for TQQQ.
TQQQ is categorized as Leveraged Equities, while LQD is Corporate Bonds. TQQQ tracks NASDAQ-100 Index (300%), while LQD tracks iBoxx $ Liquid Investment Grade Index. They also come from different issuers: ProShares and iShares. Their fees differ too: 0.95% for TQQQ and 0.15% for LQD.
TQQQ currently has the higher Sharpe Ratio (2.16 vs 1.08), 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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