ETF Versus

IEF vs LQD

iShares 7-10 Year Treasury Bond ETF vs iShares iBoxx $ Investment Grade Corporate Bond ETF

Last updated: 2026-04-02

IEF iShares

iShares 7-10 Year Treasury Bond ETF (IEF) is an exchange-traded fund issued by iShares that provides exposure to intermediate-term U.S. Treasury bonds. It charges a low expense ratio of 0.15%. The fund offers an attractive dividend yield of 3.84%. Launched in 2002, the fund has a 24-year track record.

AUM: $48.0B ER: 0.15% Yield: 3.84% Since: Jul 22, 2002
LQD iShares

iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is an exchange-traded fund issued by iShares that provides exposure to investment-grade U.S. corporate bonds. It charges a low expense ratio of 0.14%. The fund offers a high dividend yield of 4.53%. Launched in 2002, the fund has a 24-year track record.

AUM: $29.2B ER: 0.14% Yield: 4.53% Since: Jul 22, 2002

Quick Verdict

Both funds have nearly identical expense ratios (0.14% vs 0.15%), so fees are not a differentiator here. Both funds have delivered similar 1-year returns (-0.4% vs 0.0%), tracking closely. Income investors may prefer LQD for its higher yield (4.5% vs 3.8%).

Key Metrics

Metric IEF LQD
Expense Ratio 0.15% 0.14%
Dividend Yield 3.8% 4.5%
Fund Family iShares iShares
Category US Intermediate Treasury US Investment Grade Corporate

Performance Chart

Indexed to 100 at start (5-year comparison)

75 81 87 93 99 105 2021-04 2022-06 2023-09 2024-12 2026-04
IEF -15.9%
LQD -16.4%

Performance Comparison

Period IEF LQD Difference
1 Month -2.14% -2.04% -0.10%
3 Months -1.08% -1.36% +0.28%
6 Months -1.41% -2.59% +1.18%
YTD -1.08% -1.36% +0.28%
1 Year -0.38% +0.00% -0.38%
3 Years -4.38% -1.16% -3.22%
5 Years -15.92% -16.40% +0.48%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IEF Fees LQD Fees You Save
$10.000 10 years $298 $278 $20
$10.000 20 years $1.278 $1.194 $84
$10.000 30 years $4.109 $3.841 $269
$50.000 10 years $1.490 $1.391 $99
$50.000 30 years $20.547 $19.203 $1.344
$100.000 30 years $41.094 $38.406 $2.688

Risk Metrics

Based on 5 years of daily returns

Metric IEF LQD
Annualized Volatility 7.7% 8.7%
Max Drawdown -24.7% -27.9%
Sharpe Ratio -1.00 -0.89

Dividend Comparison

Metric IEF LQD
Annual Dividend (per share) $3.65 $4.92
Dividend Yield 3.84% 4.53%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose LQD if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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