IGEB vs LQD
iShares Investment Grade Systematic Bond ETF vs iShares iBoxx $ Investment Grade Corporate Bond ETF
Which is better, IGEB or LQD?
Nearly the same fund. LQD costs less.
LQD has a lower expense ratio. IGEB led over 5Y and the full window, LQD over 1Y and 3Y. The two have moved almost in lockstep, correlation 0.98.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IGEB | LQD |
|---|---|---|
| Expense Ratio | 0.18% | 0.14%Best |
| AUM | $1.4B | $29.1B |
| Dividend Yield | 5.34% | 4.91% |
| Holdings | 449 | 6,282 |
| YTD Return | -5.91% | -3.47%Best |
| 1Y Return | -6.21% | -4.06%Best |
| 3Y Return (annualized) | +4.53% | +5.17%Best |
| 5Y Return (annualized) | -0.67%Best | -1.30% |
| Volatility (annualized) | 7.3%Best | 8.6% |
| Max Drawdown | -21.1%Best | -24.9% |
| $10,000 over 5 years | $9,669Best | $9,367 |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) |
| Category | Fixed Income | Fixed Income |
| Style | Long Term Mid Quality | Long Term Mid Quality |
| Inception | Jul 11, 2017 | Jul 22, 2002 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 13, 2017 to Oct 14, 2026 (9.3 years).
IGEB vs LQD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.3 years both funds cover.
IGEB vs LQD Performance
iShares Investment Grade Systematic Bond ETF (IGEB) is an ETF from iShares by BlackRock (US) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is an ETF from iShares by BlackRock (US). Over the past year IGEB returned -6.21% while LQD returned -4.06%. Year to date, IGEB is down 5.91% versus a loss of 3.47% for LQD.
Over three years, IGEB compounded at +4.53% per year against +5.17% for LQD; over five years the annualized figures are -0.67% and -1.30% respectively. Across the full 9-year window we track, IGEB has the edge at +2.21% annualized vs +1.91%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LQD has been the more volatile fund, with annualized monthly volatility of 8.6% compared with 7.3% for IGEB. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -21.1% for IGEB and -24.9% for LQD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IGEB charges 0.18% per year while LQD charges 0.14%. On a $10,000 position that is $18 vs $14 annually, a gap of $4 per year that compounds over a long holding period. On income, IGEB currently yields 5.34% against 4.91% for LQD.
Holdings Overlap
We hold position weights for 345 holdings in IGEB and 2,534 in LQD, totalling 81.2% and 76.0% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 216 positions appear in both.
216 positions in common, counted across the 345 positions we hold weights for in IGEB and 2,534 in LQD, against full books of 449 and 6,282.
Top Shared Holdings
| Stock | Weight in IGEB | Weight in LQD | Difference |
|---|---|---|---|
| XTSLABlackrock Cash Funds: Treasury, Sl Agency Shares | 1.41% | 1.01% | 0.40% |
| BA 5.15 05/01/30The Boeing Co 5.150 May 01 30 | 0.47% | 0.11% | 0.36% |
| BRITEL 9.625 12/15/3British Telecommunications Plc 8.625% 12/15/2030 | 0.50% | 0.07% | 0.43% |
| JPM V2.545 11/08/32Jpmorgan Chase + Co Sr Unsecured 11/32 Var 2.545 11/08/2032 | 0.50% | 0.07% | 0.43% |
| JPM V2.963 01/25/33Jpmorgan Chase & Co. 1D US Sofr + 1.26 01/25/2033 | 0.50% | 0.07% | 0.43% |
| SPLLLC 4.5 05/15/30Sabine Pass Liquefaction Sr Secured 15/05/30 4.5 | 0.50% | 0.04% | 0.46% |
| TMUST-Mobile Usa, Inc. 3.875% 15-Apr-2030 | 0.36% | 0.18% | 0.18% |
| S 8.75 03/15/32Sprint Capital Corp. 8.75 03/15/2032 | 0.48% | 0.05% | 0.43% |
| MO 5.8 02/14/39Altria Group Inc | 0.48% | 0.05% | 0.43% |
| GOOGL 2.25 08/15/60Alphabet Inc 2.25 Aug 15, 2060 | 0.50% | 0.02% | 0.48% |
You are not choosing between two funds in isolation.
Whichever of IGEB and LQD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IGEB or LQD?
IGEB has an expense ratio of 0.18% while LQD charges 0.14%. LQD is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, IGEB or LQD?
Over the past year IGEB returned -6.21% vs -4.06% for LQD, so LQD leads on 1-year performance. Over the longest common window we track (9 years), IGEB annualized +2.21% vs +1.91% for LQD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IGEB or LQD?
LQD has been the more volatile fund at 8.6% annualized versus 7.3% for IGEB. Worst drawdown: IGEB -21.1% vs LQD -24.9%.
Should I hold both IGEB and LQD?
IGEB and LQD have a monthly-return correlation of 0.98, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, IGEB or LQD?
IGEB yields 5.34% while LQD yields 4.91%, so IGEB currently pays the higher dividend yield.
Is LQD better than IGEB?
LQD has a lower expense ratio. IGEB led over 5Y and the full window, LQD over 1Y and 3Y. The two have moved almost in lockstep, correlation 0.98. Which one suits a particular account depends on what it is for. This is information, not a recommendation.