LQDB vs VTI
iShares BBB Rated Corporate Bond ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | LQDB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $59M | $666.9B | |
| Dividend Yield | 4.77% | 1.07% | |
| Holdings | 1,673 | 3,543 | |
| YTD Return | -0.09% | +12.65% | |
| 1Y Return | +2.12% | +21.39% | |
| 3Y Return (annualized) | +5.94% | +21.54% | |
| 5Y Return (annualized) | +0.18% | +12.11% | |
| Volatility (annualized) | 7.8% | 15.3% | |
| Max Drawdown | -21.6% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 18, 2021 | May 24, 2001 |
LQDB vs VTI Performance
iShares BBB Rated Corporate Bond ETF (LQDB) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year LQDB returned +2.12% while VTI returned +21.39%. Year to date, LQDB is down 0.09% versus a gain of 12.65% for VTI.
Over three years, LQDB compounded at +5.94% per year against +21.54% for VTI; over five years the annualized figures are +0.18% and +12.11% respectively. Across the full 5-year window we track, VTI has the edge at +8.07% annualized vs +0.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI 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 -56.6% for VTI. 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 VTI 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 4.77% against 1.07% for VTI.
Holdings Overlap
LQDB and VTI share 3 holdings out of 4288 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LQDB or VTI?
LQDB has an expense ratio of 0.15% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, LQDB or VTI?
Over the past year LQDB returned +2.12% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), LQDB annualized +0.79% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, LQDB or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 7.8% for LQDB. Worst drawdown: LQDB -21.6% vs VTI -56.6%.
Should I hold both LQDB and VTI?
LQDB and VTI 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 VTI?
LQDB and VTI share 3 common holdings with a 0.1% weight overlap. Combined, they hold 4288 unique securities.
Which pays a higher dividend, LQDB or VTI?
LQDB yields 4.77% while VTI yields 1.07%, so LQDB currently pays the higher dividend yield.
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