LQDB vs VXUS
LQDB vs VXUS
iShares BBB Rated 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 | LQDB | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.05% | |
| AUM | $59M | $156.5B | |
| Dividend Yield | 4.68% | 2.60% | |
| Holdings | 1,673 | 8,747 | |
| YTD Return | -0.20% | +14.57% | |
| 1Y Return | +2.06% | +27.82% | |
| 3Y Return (annualized) | +5.24% | +19.27% | |
| 5Y Return (annualized) | +0.30% | +9.28% | |
| Volatility (annualized) | 7.8% | 15.1% | |
| Max Drawdown | -21.6% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 18, 2021 | Jan 26, 2011 |
LQDB vs VXUS Performance
iShares BBB Rated Corporate Bond ETF (LQDB) 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 LQDB returned +2.06% while VXUS returned +27.82%. Year to date, LQDB is down 0.20% versus a gain of 14.57% for VXUS.
Over three years, LQDB compounded at +5.24% per year against +19.27% for VXUS; over five years the annualized figures are +0.30% and +9.28% respectively. Across the full 5-year window we track, VXUS has the edge at +4.86% annualized vs +0.77%. 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 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 -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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LQDB charges 0.15% per year while VXUS charges 0.05%. On a $10,000 position that is $15 vs $5 annually, a gap of $10 per year that compounds over a long holding period. On income, LQDB currently yields 4.68% against 2.60% for VXUS.
Holdings Overlap
LQDB and VXUS share 0 holdings out of 8987 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 VXUS?
LQDB has an expense ratio of 0.15% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, LQDB or VXUS?
Over the past year LQDB returned +2.06% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), LQDB annualized +0.77% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, LQDB or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 7.8% for LQDB. Worst drawdown: LQDB -21.6% vs VXUS -39.9%.
Should I hold both LQDB and VXUS?
LQDB and VXUS have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LQDB and VXUS?
LQDB and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8987 unique securities.
Which pays a higher dividend, LQDB or VXUS?
LQDB yields 4.68% while VXUS yields 2.60%, so LQDB currently pays the higher dividend yield.
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