XBI vs. LQD
XBI (SPDR S&P Biotech ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - XBI is a Health & Biotech Equities fund tracking the S&P Biotechnology Select Industry Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, XBI returned 9.98%/yr vs 2.52%/yr for LQD. At a 0.08 correlation, their price movements are largely independent. XBI charges 0.35%/yr vs 0.15%/yr for LQD.
Performance
XBI vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, XBI achieves a 11.87% return, which is significantly higher than LQD's 0.80% return. Over the past 10 years, XBI has outperformed LQD with an annualized return of 9.98%, while LQD has yielded a comparatively lower 2.52% annualized return.
XBI
- 1D
- 1.95%
- 1M
- 4.37%
- YTD
- 11.87%
- 6M
- 11.41%
- 1Y
- 63.76%
- 3Y*
- 16.08%
- 5Y*
- 0.52%
- 10Y*
- 9.98%
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%
XBI vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XBI SPDR S&P Biotech ETF | 11.87% | 35.89% | 1.01% | 7.60% | -25.87% | -20.45% | 48.33% | 32.56% | -15.28% | 43.77% |
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 XBI and LQD is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.34 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.30 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.20 |
Correlation (All Time) Calculated using the full available price history since Feb 6, 2006 | 0.08 |
Over the past year, XBI and LQD have become more correlated (0.37) than their long-term average of 0.08, meaning their price movements have been converging.
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Return for Risk
XBI vs. LQD — Risk / Return Rank
XBI
LQD
XBI vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Biotech ETF (XBI) 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.
| XBI | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.36 | ||
| Sortino ratioReturn per unit of downside risk | +1.68 | ||
| Omega ratioGain probability vs. loss probability | 1.39 | 1.19 | +0.20 |
| Calmar ratioReturn relative to maximum drawdown | 6.59 | 1.74 | +4.85 |
| Martin ratioReturn relative to average drawdown | 19.47 | 4.88 | +14.59 |
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Drawdowns
XBI vs. LQD - Drawdown Comparison
The maximum XBI drawdown since its inception was -63.89%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for XBI and LQD.
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Drawdown Indicators
| XBI | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -63.89% | -24.95% | -38.94% |
Max Drawdown (1Y)Largest decline over 1 year | -9.72% | -3.34% | -6.38% |
Max Drawdown (3Y)Largest decline over 3 years | -32.99% | -8.43% | -24.56% |
Max Drawdown (5Y)Largest decline over 5 years | -54.71% | -24.95% | -29.76% |
Max Drawdown (10Y)Largest decline over 10 years | -63.89% | -24.95% | -38.94% |
Current DrawdownCurrent decline from peak | -21.16% | -3.39% | -17.77% |
Average DrawdownAverage peak-to-trough decline | -20.93% | -3.99% | -16.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.29% | 1.19% | +2.10% |
Volatility
XBI vs. LQD - Volatility Comparison
SPDR S&P Biotech ETF (XBI) has a higher volatility of 10.55% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.78%. This indicates that XBI'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
| XBI | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.55% | 1.78% | +8.77% |
Volatility (6M)Calculated over the trailing 6-month period | 20.83% | 4.02% | +16.81% |
Volatility (1Y)Calculated over the trailing 1-year period | 26.18% | 5.32% | +20.86% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 32.22% | 8.65% | +23.57% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 32.03% | 8.69% | +23.34% |
XBI vs. LQD - Expense Ratio Comparison
XBI has a 0.35% expense ratio, which is higher than LQD's 0.15% expense ratio.
Dividends
XBI vs. LQD - Dividend Comparison
XBI's dividend yield for the trailing twelve months is around 0.32%, 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% |
XBI SPDR S&P Biotech ETF | 0.32% | 0.37% | 0.15% | 0.02% | 0.00% | 0.04% | 0.20% | 0.00% | 0.28% | 0.24% | 0.26% | 0.61% |
Frequently Asked Questions
XBI and LQD have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XBI has higher volatility (10.55%) compared to LQD (1.78%). In terms of maximum drawdown, XBI dropped -63.89% vs LQD's -24.95%.
On 10-year performance, XBI leads with 9.98% 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, XBI has performed better with a 9.98% 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 0.35% for XBI.
LQD has the higher dividend yield at 4.55%, compared with 0.32% for XBI.
XBI is categorized as Health & Biotech Equities, while LQD is Corporate Bonds. XBI tracks S&P Biotechnology Select Industry Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for XBI and 0.15% for LQD.
XBI currently has the higher Sharpe Ratio (2.45 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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