LQDB vs SPY
LQDB vs SPY
iShares BBB Rated Corporate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. LQDB offers more diversification with 1126 holdings.
Side-by-Side Comparison
| Metric | LQDB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.09% | |
| AUM | $59M | $789.1B | |
| Dividend Yield | 4.68% | 1.01% | |
| Holdings | 1,673 | 505 | |
| YTD Return | -0.20% | +13.79% | |
| 1Y Return | +2.06% | +23.66% | |
| 3Y Return (annualized) | +5.24% | +21.40% | |
| 5Y Return (annualized) | +0.30% | +13.37% | |
| Volatility (annualized) | 7.8% | 15.3% | |
| Max Drawdown | -21.6% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 18, 2021 | Jan 22, 1993 |
LQDB vs SPY Performance
iShares BBB Rated Corporate Bond ETF (LQDB) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year LQDB returned +2.06% while SPY returned +23.66%. Year to date, LQDB is down 0.20% versus a gain of 13.79% for SPY.
Over three years, LQDB compounded at +5.24% per year against +21.40% for SPY; over five years the annualized figures are +0.30% and +13.37% respectively. Across the full 5-year window we track, SPY has the edge at +8.85% annualized vs +0.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 7.8% for LQDB. 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 -21.6% for LQDB and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LQDB charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, LQDB currently yields 4.68% against 1.01% for SPY.
Holdings Overlap
LQDB and SPY share 0 holdings out of 1629 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LQDB or SPY?
LQDB has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, LQDB or SPY?
Over the past year LQDB returned +2.06% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), LQDB annualized +0.77% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, LQDB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 7.8% for LQDB. Worst drawdown: LQDB -21.6% vs SPY -56.5%.
Should I hold both LQDB and SPY?
LQDB and SPY have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LQDB and SPY?
LQDB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1629 unique securities.
Which pays a higher dividend, LQDB or SPY?
LQDB yields 4.68% while SPY yields 1.01%, so LQDB currently pays the higher dividend yield.
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