LQDH vs SPY
LQDH vs SPY
iShares Interest Rate Hedged 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. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | LQDH | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.09% | |
| AUM | $526M | $789.1B | |
| Dividend Yield | 5.96% | 1.01% | |
| Holdings | 185 | 505 | |
| YTD Return | +1.83% | +13.79% | |
| 1Y Return | +5.31% | +23.66% | |
| 3Y Return (annualized) | +7.11% | +21.40% | |
| 5Y Return (annualized) | +5.19% | +13.37% | |
| Volatility (annualized) | 5.3% | 15.3% | |
| Max Drawdown | -28.2% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 27, 2014 | Jan 22, 1993 |
LQDH vs SPY Performance
iShares Interest Rate Hedged Corporate Bond ETF (LQDH) 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 LQDH returned +5.31% while SPY returned +23.66%. Year to date, LQDH is up 1.83% versus a gain of 13.79% for SPY.
Over three years, LQDH compounded at +7.11% per year against +21.40% for SPY; over five years the annualized figures are +5.19% and +13.37% respectively. Across the full 12-year window we track, SPY has the edge at +8.85% annualized vs +1.77%. 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 5.3% for LQDH. 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 -28.2% for LQDH 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LQDH charges 0.24% per year while SPY charges 0.09%. On a $10,000 position that is $24 vs $9 annually, a gap of $15 per year that compounds over a long holding period. On income, LQDH currently yields 5.96% against 1.01% for SPY.
Holdings Overlap
LQDH and SPY share 0 holdings out of 505 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, LQDH or SPY?
LQDH has an expense ratio of 0.24% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, LQDH or SPY?
Over the past year LQDH returned +5.31% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), LQDH annualized +1.77% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, LQDH or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.3% for LQDH. Worst drawdown: LQDH -28.2% vs SPY -56.5%.
Should I hold both LQDH and SPY?
LQDH and SPY have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LQDH and SPY?
LQDH and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, LQDH or SPY?
LQDH yields 5.96% while SPY yields 1.01%, so LQDH currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.