LQDW vs VOO
iShares Investment Grade Corporate Bond BuyWrite Strategy ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. LQDW offers more diversification with 3,135 holdings.
Side-by-Side Comparison
| Metric | LQDW | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.03% | |
| AUM | $319M | $997.4B | |
| Dividend Yield | 12.32% | 1.08% | |
| Holdings | 3,135 | 509 | |
| YTD Return | -5.09% | +12.68% | |
| 1Y Return | -3.35% | +21.87% | |
| 3Y Return (annualized) | +1.74% | +22.06% | |
| 5Y Return (annualized) | - | +12.95% | |
| Volatility (annualized) | 5.9% | 14.1% | |
| Max Drawdown | -9.2% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 18, 2022 | Sep 7, 2010 |
LQDW vs VOO Performance
iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (LQDW) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year LQDW returned -3.35% while VOO returned +21.87%. Year to date, LQDW is down 5.09% versus a gain of 12.68% for VOO.
Over three years, LQDW compounded at +1.74% per year against +22.06% for VOO. Across the full 4-year window we track, VOO has the edge at +13.47% annualized vs +0.47%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 5.9% for LQDW. 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 -9.2% for LQDW and -34.3% for VOO. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LQDW charges 0.34% per year while VOO charges 0.03%. On a $10,000 position that is $34 vs $3 annually, a gap of $31 per year that compounds over a long holding period. On income, LQDW currently yields 12.32% against 1.08% for VOO.
Holdings Overlap
LQDW and VOO share 0 holdings out of 524 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, LQDW or VOO?
LQDW has an expense ratio of 0.34% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, LQDW or VOO?
Over the past year LQDW returned -3.35% vs +21.87% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (4 years), LQDW annualized +0.47% vs +13.47% for VOO. Past performance does not guarantee future results.
Which is riskier, LQDW or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 5.9% for LQDW. Worst drawdown: LQDW -9.2% vs VOO -34.3%.
Should I hold both LQDW and VOO?
LQDW and VOO have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LQDW and VOO?
LQDW and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 524 unique securities.
Which pays a higher dividend, LQDW or VOO?
LQDW yields 12.32% while VOO yields 1.08%, so LQDW currently pays the higher dividend yield.
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