Buyers selecting between iShares iBoxx $ Funding Grade Company Bond ETF (NYSEMKT:LQD) and Schwab Lengthy-Time period U.S. Treasury ETF (NYSEMKT:SCHQ) should weigh decrease prices and Treasury security in opposition to the upper returns of company credit score.
These two funds present distinct paths for fixed-income publicity, serving to traders steadiness yield and security. the iShares fund targets a broad basket of investment-grade company bonds, whereas the Schwab fund focuses completely on the lengthy finish of the U.S. Treasury market. Every carries completely different dangers concerning credit score high quality and rate of interest sensitivity in altering financial environments.
Snapshot (price & dimension)
|
Metric |
LQD |
SCHQ |
|---|---|---|
|
Issuer |
iShares |
Schwab |
|
Expense ratio |
0.14% |
0.03% |
|
1-yr return (as of June 3, 2026) |
6.10% |
5.20% |
|
Dividend yield |
4.60% |
4.80% |
|
Beta |
0.44 |
0.49 |
|
AUM |
$29.9 billion |
$765.6 million |
Beta measures worth volatility relative to the S&P 500; beta is calculated from five-year month-to-month returns. The 1-yr return represents whole return over the trailing 12Â months. Dividend yield is the trailing-12-month distribution yield.
The Schwab fund is notably extra reasonably priced, sporting an expense ratio of 0.03% in comparison with 0.14% for LQD. Buyers might additionally profit from a barely increased payout, as SCHQ affords a dividend yield of 4.80%.
Efficiency & danger comparability
|
Metric |
LQD |
SCHQ |
|---|---|---|
|
Max drawdown (5 yr) |
(24.90%) |
(40.90%) |
|
Progress of $1,000 over 5 years (whole return) |
$998 |
$762 |
What’s inside
Schwab Lengthy-Time period U.S. Treasury ETF (NYSEMKT:SCHQ) holds 100 positions and focuses as carefully as attainable on the full return of the long-term U.S. Treasury bond market. Its reported sector publicity consists of 91% in money and others, 5% in expertise, and three% in communication companies. Prime holdings embrace Wi Treasury Bond at 2.29%, Treasury Bond at 2.11%, and one other Wi Treasury Bond situation at 1.37%. This fund launched in 2019 and has paid $1.48 per share over the trailing 12 months. Its technique makes it extremely delicate to rate of interest fluctuations, which may drive vital worth swings.
iShares iBoxx $ Funding Grade Company Bond ETF (NYSEMKT:LQD) focuses as a substitute on U.S. dollar-denominated, investment-grade company bonds. This mounted earnings fund experiences three holdings and is very diversified, as no single place exceeds 0.20% of the portfolio. It launched in 2002 and has a trailing-12-month dividend of $4.96 per share. By prioritizing company debt, the fund avoids the direct sovereign focus of SCHQ however stays delicate to the credit score well being of the underlying issuers. The fund seeks funding outcomes that correspond to an index of high-quality company debt.
