ETF Versus

LQD vs TLT

iShares iBoxx $ Investment Grade Corporate Bond ETF vs iShares 20+ Year Treasury Bond ETF

Last updated: 2026-04-02

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
TLT iShares

iShares 20+ Year Treasury Bond ETF (TLT) is an exchange-traded fund issued by iShares that provides exposure to long-duration U.S. Treasury bonds with high interest rate sensitivity. It charges a low expense ratio of 0.15%. The fund offers a high dividend yield of 4.51%. Launched in 2002, the fund has a 24-year track record.

AUM: $41.7B ER: 0.15% Yield: 4.51% 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. Over the past year, LQD has significantly outperformed with a 0.0% return vs -5.7%.

Key Metrics

Metric LQD TLT
Expense Ratio 0.14% 0.15%
Dividend Yield 4.5% 4.5%
Fund Family iShares iShares
Category US Investment Grade Corporate US Long-Term Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

60 71 82 93 104 115 2021-04 2022-06 2023-09 2024-12 2026-04
LQD -16.4%
TLT -37.0%

Performance Comparison

Period LQD TLT Difference
1 Month -2.04% -3.74% +1.70%
3 Months -1.36% -0.88% -0.48%
6 Months -2.59% -3.49% +0.90%
YTD -1.36% -0.88% -0.48%
1 Year +0.00% -5.72% +5.72%
3 Years -1.16% -19.08% +17.92%
5 Years -16.40% -37.00% +20.60%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

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

Risk Metrics

Based on 5 years of daily returns

Metric LQD TLT
Annualized Volatility 8.7% 15.9%
Max Drawdown -27.9% -46.4%
Sharpe Ratio -0.89 -0.79

Dividend Comparison

Metric LQD TLT
Annual Dividend (per share) $4.92 $3.89
Dividend Yield 4.53% 4.51%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose LQD if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Related Comparisons

AGG vs LQD AGG vs TLT BND vs LQD BND vs TLT DGRO vs LQD DGRO vs TLT DVY vs LQD DVY vs TLT