LQDB vs SPY
iShares BBB Rated Corporate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, LQDB or SPY?
SPY has been ahead.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | LQDB | SPY |
|---|---|---|
| Expense Ratio | 0.15% | 0.09%Best |
| AUM | $58M | $811.2B |
| Dividend Yield | 4.80% | 0.98% |
| Holdings | 1,777 | 1,515 |
| YTD Return | -2.45% | +13.54%Best |
| 1Y Return | -2.32% | +16.25%Best |
| 3Y Return (annualized) | +5.83% | +23.72%Best |
| 5Y Return (annualized) | -0.16% | +13.95%Best |
| Volatility (annualized) | 7.8%Best | 15.3% |
| Max Drawdown | -21.6%Best | -24.5% |
| $10,000 over 5 years | $9,920 | $19,212Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Blend |
| Inception | May 18, 2021 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 20, 2021 to Oct 2, 2026 (5.4 years).
LQDB vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.4 years both funds cover.
LQDB vs SPY Performance
iShares BBB Rated Corporate Bond ETF (LQDB) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year LQDB returned -2.32% while SPY returned +16.25%. Year to date, LQDB is down 2.45% versus a gain of 13.54% for SPY.
Over three years, LQDB compounded at +5.83% per year against +23.72% for SPY; over five years the annualized figures are -0.16% and +13.95% respectively.
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 -24.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 4.80% against 0.98% for SPY.
Holdings Overlap
At least 0.2% of SPY's money is in holdings LQDB also owns.
Stated as a floor: for LQDB, our book for it covers 89.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 1,544 positions we hold weights for in LQDB and 504 in SPY, against full books of 1,777 and 1,515.
You are not choosing between two funds in isolation.
Whichever of LQDB and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $6 a year on a $10,000 investment.
Which performed better, LQDB or SPY?
Over the past year LQDB returned -2.32% vs +16.25% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
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 -24.5%.
Should I hold both LQDB and SPY?
LQDB and SPY have a monthly-return correlation of 0.72, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, LQDB or SPY?
LQDB yields 4.80% while SPY yields 0.98%, so LQDB currently pays the higher dividend yield.
Is SPY better than LQDB?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.