LQDI vs VXUS
LQDI vs VXUS
iShares Inflation Hedged Corporate Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | LQDI | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $69M | $156.5B | |
| Dividend Yield | 4.60% | 2.60% | |
| Holdings | 128 | 8,747 | |
| YTD Return | -2.38% | +13.40% | |
| 1Y Return | -1.08% | +27.42% | |
| 3Y Return (annualized) | +3.97% | +18.54% | |
| 5Y Return (annualized) | +0.37% | +9.05% | |
| Volatility (annualized) | 9.1% | 15.1% | |
| Max Drawdown | -29.0% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 8, 2018 | Jan 26, 2011 |
LQDI vs VXUS Performance
iShares Inflation Hedged Corporate Bond ETF (LQDI) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year LQDI returned -1.08% while VXUS returned +27.42%. Year to date, LQDI is down 2.38% versus a gain of 13.40% for VXUS.
Over three years, LQDI compounded at +3.97% per year against +18.54% for VXUS; over five years the annualized figures are +0.37% and +9.05% respectively. Across the full 8-year window we track, VXUS has the edge at +4.79% annualized vs +3.68%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 9.1% for LQDI. 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 -29.0% for LQDI and -39.9% for VXUS. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LQDI charges 0.18% per year while VXUS charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, LQDI currently yields 4.60% against 2.60% for VXUS.
Holdings Overlap
LQDI and VXUS share 0 holdings out of 7863 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, LQDI or VXUS?
LQDI has an expense ratio of 0.18% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, LQDI or VXUS?
Over the past year LQDI returned -1.08% vs +27.42% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (8 years), LQDI annualized +3.68% vs +4.79% for VXUS. Past performance does not guarantee future results.
Which is riskier, LQDI or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 9.1% for LQDI. Worst drawdown: LQDI -29.0% vs VXUS -39.9%.
Should I hold both LQDI and VXUS?
LQDI and VXUS have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LQDI and VXUS?
LQDI and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7863 unique securities.
Which pays a higher dividend, LQDI or VXUS?
LQDI yields 4.60% while VXUS yields 2.60%, so LQDI currently pays the higher dividend yield.
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