LQDB vs VOO
LQDB vs VOO
iShares BBB Rated Corporate Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. LQDB offers more diversification with 1126 holdings.
Side-by-Side Comparison
| Metric | LQDB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $59M | $979.0B | |
| Dividend Yield | 4.68% | 1.09% | |
| Holdings | 1,673 | 509 | |
| YTD Return | -0.33% | +13.11% | |
| 1Y Return | +1.93% | +22.88% | |
| 3Y Return (annualized) | +5.30% | +21.08% | |
| 5Y Return (annualized) | +0.21% | +13.26% | |
| Volatility (annualized) | 7.8% | 14.1% | |
| Max Drawdown | -21.6% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 18, 2021 | Sep 7, 2010 |
LQDB vs VOO Performance
iShares BBB Rated Corporate Bond ETF (LQDB) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year LQDB returned +1.93% while VOO returned +22.88%. Year to date, LQDB is down 0.33% versus a gain of 13.11% for VOO.
Over three years, LQDB compounded at +5.30% per year against +21.08% for VOO; over five years the annualized figures are +0.21% and +13.26% respectively. Across the full 5-year window we track, VOO has the edge at +13.54% annualized vs +0.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, LQDB currently yields 4.68% against 1.09% for VOO.
Holdings Overlap
LQDB and VOO share 0 holdings out of 1631 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 VOO?
LQDB has an expense ratio of 0.15% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, LQDB or VOO?
Over the past year LQDB returned +1.93% vs +22.88% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (5 years), LQDB annualized +0.75% vs +13.54% for VOO. Past performance does not guarantee future results.
Which is riskier, LQDB or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 7.8% for LQDB. Worst drawdown: LQDB -21.6% vs VOO -34.3%.
Should I hold both LQDB and VOO?
LQDB and VOO 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 VOO?
LQDB and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1631 unique securities.
Which pays a higher dividend, LQDB or VOO?
LQDB yields 4.68% while VOO yields 1.09%, so LQDB currently pays the higher dividend yield.
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