IUSB vs LQD
iShares Core Universal USD Bond ETF vs iShares iBoxx $ Investment Grade Corporate Bond ETF
Which is better, IUSB or LQD?
Nearly the same fund. IUSB costs less.
IUSB has a lower expense ratio. IUSB led over 1Y and 5Y, LQD over 3Y and the full window. The two have moved almost in lockstep, correlation 0.95.
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 | IUSB | LQD |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.14% |
| AUM | $48.8B | $29.1B |
| Dividend Yield | 4.43% | 4.91% |
| Holdings | 17,578 | 6,282 |
| YTD Return | -1.85%Best | -3.47% |
| 1Y Return | -1.61%Best | -4.06% |
| 3Y Return (annualized) | +4.99% | +5.17%Best |
| 5Y Return (annualized) | -0.15%Best | -1.30% |
| Volatility (annualized) | 4.8%Best | 7.8% |
| Max Drawdown | -50.2% | -24.9%Best |
| $10,000 over 5 years | $9,925Best | $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 | Jun 10, 2014 | Jul 22, 2002 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 12, 2014 to Oct 14, 2026 (12.3 years).
IUSB 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 12.3 years both funds cover.
IUSB vs LQD Performance
iShares Core Universal USD Bond ETF (IUSB) 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 IUSB returned -1.61% while LQD returned -4.06%. Year to date, IUSB is down 1.85% versus a loss of 3.47% for LQD.
Over three years, IUSB compounded at +4.99% per year against +5.17% for LQD; over five years the annualized figures are -0.15% and -1.30% respectively. Across the full 12-year window we track, LQD has the edge at +2.40% annualized vs +0.53%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LQD has been the more volatile fund, with annualized monthly volatility of 7.8% compared with 4.8% for IUSB. 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 -50.2% for IUSB 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IUSB charges 0.06% per year while LQD charges 0.14%. On a $10,000 position that is $6 vs $14 annually, a gap of $8 per year that compounds over a long holding period. On income, IUSB currently yields 4.43% against 4.91% for LQD.
Holdings Overlap
We hold position weights for 12,897 holdings in IUSB and 2,534 in LQD, totalling 59.3% 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, 2,461 positions appear in both.
2,461 positions in common, counted across the 12,897 positions we hold weights for in IUSB and 2,534 in LQD, against full books of 17,578 and 6,282.
Top Shared Holdings
| Stock | Weight in IUSB | Weight in LQD | Difference |
|---|---|---|---|
| XTSLABlackrock Cash Funds: Treasury, Sl Agency Shares | 0.00% | 1.01% | 1.01% |
| ABIBB 4.9 02/01/46 *Anheuser-busch Cos Llc / Anheuser-busch Inbev Worldwide Inc 4.9 02/01/2046 | 0.02% | 0.19% | 0.17% |
| TMUST-Mobile Usa, Inc. 3.875% 15-Apr-2030 | 0.02% | 0.18% | 0.16% |
| CVS 5.05 03/25/48Cvs Health Corp 5.05 03/25/2048 | 0.01% | 0.16% | 0.15% |
| PFE 5.3 05/19/53Pfizer Investment Enterprises Pte Ltd Corporate Bonds | 0.01% | 0.14% | 0.13% |
| GS 6.75 10/01/37Goldman Sachs Group, Inc. (the) 6.75 10/01/2037 | 0.01% | 0.14% | 0.13% |
| BAC V5.015 07/22/33 | 0.01% | 0.13% | 0.12% |
| BA 5.805 05/01/50Boeing Co 5.805%, Due 05/01/2050 | 0.01% | 0.13% | 0.12% |
| WFC V5.013 04/04/51 | 0.01% | 0.13% | 0.12% |
| ABBV 3.2 11/21/29Abbvie Inc 3.2 11/21/2029 | 0.01% | 0.13% | 0.12% |
You are not choosing between two funds in isolation.
Whichever of IUSB and LQD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
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Frequently Asked Questions
Which is cheaper, IUSB or LQD?
IUSB has an expense ratio of 0.06% while LQD charges 0.14%. IUSB is the cheaper option, by $8 a year on a $10,000 investment.
Which performed better, IUSB or LQD?
Over the past year IUSB returned -1.61% vs -4.06% for LQD, so IUSB leads on 1-year performance. Over the longest common window we track (12 years), IUSB annualized +0.53% vs +2.40% for LQD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IUSB or LQD?
LQD has been the more volatile fund at 7.8% annualized versus 4.8% for IUSB. Worst drawdown: IUSB -50.2% vs LQD -24.9%.
Should I hold both IUSB and LQD?
IUSB and LQD have a monthly-return correlation of 0.95, 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, IUSB or LQD?
IUSB yields 4.43% while LQD yields 4.91%, so LQD currently pays the higher dividend yield.
Is LQD better than IUSB?
IUSB has a lower expense ratio. IUSB led over 1Y and 5Y, LQD over 3Y and the full window. The two have moved almost in lockstep, correlation 0.95. Which one suits a particular account depends on what it is for. This is information, not a recommendation.