VNQI vs. LQD
VNQI (Vanguard Global ex-U.S. Real Estate ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - VNQI is a REIT fund tracking the S&P Global ex-U.S. Property Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, VNQI returned 2.19%/yr vs 2.41%/yr for LQD. At a 0.19 correlation, their price movements are largely independent. VNQI charges 0.12%/yr vs 0.15%/yr for LQD.
Performance
VNQI vs. LQD - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VNQI achieves a -3.93% return, which is significantly lower than LQD's -0.06% return. Over the past 10 years, VNQI has underperformed LQD with an annualized return of 2.19%, while LQD has yielded a comparatively higher 2.41% annualized return.
VNQI
- 1D
- 0.18%
- 1M
- -7.71%
- YTD
- -3.93%
- 6M
- -1.82%
- 1Y
- 3.28%
- 3Y*
- 7.32%
- 5Y*
- -2.20%
- 10Y*
- 2.19%
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%
VNQI vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQI Vanguard Global ex-U.S. Real Estate ETF | -3.93% | 21.38% | -2.22% | 6.99% | -22.94% | 5.93% | -7.22% | 21.59% | -9.44% | 26.91% |
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 VNQI and LQD is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.57 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.41 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.33 |
Correlation (All Time) Calculated using the full available price history since Nov 1, 2010 | 0.19 |
Over the past year, VNQI and LQD have become more correlated (0.57) than their long-term average of 0.19, meaning their price movements have been converging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VNQI vs. LQD — Risk / Return Rank
VNQI
LQD
VNQI vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Global ex-U.S. Real Estate ETF (VNQI) 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.
| VNQI | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.84 | ||
| Sortino ratioReturn per unit of downside risk | -1.15 | ||
| Omega ratioGain probability vs. loss probability | 1.05 | 1.19 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 0.22 | 1.72 | -1.50 |
| Martin ratioReturn relative to average drawdown | 0.66 | 4.88 | -4.23 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| VNQI | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.24 | 1.08 | -0.84 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.14 | -0.03 | -0.11 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.14 | 0.28 | -0.14 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.19 | 0.54 | -0.34 |
Drawdowns
VNQI vs. LQD - Drawdown Comparison
The maximum VNQI drawdown since its inception was -38.35%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for VNQI and LQD.
Loading charts...
Drawdown Indicators
| VNQI | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.35% | -24.95% | -13.40% |
Max Drawdown (1Y)Largest decline over 1 year | -14.78% | -3.34% | -11.44% |
Max Drawdown (3Y)Largest decline over 3 years | -16.35% | -8.43% | -7.92% |
Max Drawdown (5Y)Largest decline over 5 years | -35.75% | -24.95% | -10.80% |
Max Drawdown (10Y)Largest decline over 10 years | -38.35% | -24.95% | -13.40% |
Current DrawdownCurrent decline from peak | -13.24% | -4.21% | -9.03% |
Average DrawdownAverage peak-to-trough decline | -10.89% | -3.99% | -6.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.99% | 1.18% | +3.81% |
Volatility
VNQI vs. LQD - Volatility Comparison
Vanguard Global ex-U.S. Real Estate ETF (VNQI) has a higher volatility of 3.90% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.62%. This indicates that VNQI'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.
Loading charts...
Volatility by Period
| VNQI | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.90% | 1.62% | +2.28% |
Volatility (6M)Calculated over the trailing 6-month period | 11.61% | 3.94% | +7.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.61% | 5.32% | +8.29% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.52% | 8.65% | +6.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.07% | 8.68% | +7.39% |
VNQI vs. LQD - Expense Ratio Comparison
VNQI has a 0.12% 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
VNQI vs. LQD - Dividend Comparison
VNQI's dividend yield for the trailing twelve months is around 4.90%, more 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% |
VNQI Vanguard Global ex-U.S. Real Estate ETF | 4.90% | 4.70% | 5.16% | 3.74% | 0.57% | 6.48% | 0.93% | 7.58% | 4.62% | 3.86% | 5.18% | 2.86% |
Frequently Asked Questions
VNQI and LQD have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VNQI has higher volatility (3.90%) compared to LQD (1.62%). In terms of maximum drawdown, VNQI dropped -38.35% vs LQD's -24.95%.
On 10-year performance, LQD leads with 2.41% vs 2.19% for VNQI. On fees, VNQI is cheaper at 0.12% 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, LQD has performed better with a 2.41% return vs 2.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQI is cheaper with a 0.12% expense ratio, compared with 0.15% for LQD.
VNQI has the higher dividend yield at 4.90%, compared with 4.59% for LQD.
VNQI is categorized as REIT, while LQD is Corporate Bonds. VNQI tracks S&P Global ex-U.S. Property Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.12% for VNQI and 0.15% for LQD.
LQD currently has the higher Sharpe Ratio (1.08 vs 0.24), 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.
Find the right allocation for VNQI and LQD
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer