# LQD ETF: fees, returns, drawdowns and holdings

> What LQD holds, its 0.14% yearly fee, returns by year, its worst drop, and which Tactfolio strategies hold it. Updated daily.

iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is an exchange-traded fund (ETF) run by iShares (BlackRock). This fund holds bonds that companies sell to borrow money, in US dollars. It charges 0.14% a year. From July 2002 to October 2026 it returned about 4.4% a year, and its worst drop was −24.9%.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 16, 2026.

## Key points

- Expense ratio: 0.14% a year (about $14 on $10,000).
- Started trading on July 22, 2002.
- Last close: $103.40 on October 16, 2026.
- Return over the last year: −3.6%.
- Worst drop since 2002: −24.9%.
- 13 Tactfolio classic strategies hold it.

## How has LQD done since 2002?

From July 2002 to October 2026, LQD returned about 4.4% a year. The S&P 500 returned about 11.2% a year over the same dates. Say you put in $10,000 at the start. It would have been worth about $28,545 at the end, with every dividend reinvested.

| Period | LQD | S&P 500 (SPY) |
| --- | --- | --- |
| 1 month | −0.6% | 1.5% |
| 3 months | −2.6% | 1.9% |
| 6 months | −3.2% | 9.3% |
| Year to date | −2.8% | 12.8% |
| 1 year | −3.6% | 16.8% |
| 3 years, per year | 5.5% | 22.0% |
| 5 years, per year | −1.0% | 12.8% |
| 10 years, per year | 2.0% | 15.4% |
| Since 2002, per year | 4.4% | 11.2% |

Periods longer than a year show the return per year (CAGR). Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## LQD returns by month and year

LQD rose in 177 of its 292 months (61%). Its best month was December 2008, at 13.8%. Its worst was September 2008, at −10.7%.

| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Full year |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2026 (part) | 0.3% | 1.4% | −2.1% | 0.3% | 0.9% | 0.1% | −2.2% | 0.4% | −3.4% | 1.6% |  |  | −2.8% |
| 2025 | 0.6% | 2.4% | −0.5% | −0.3% | 0.2% | 2.1% | −0.1% | 1.0% | 1.9% | 0.1% | 0.9% | −0.7% | 7.9% |
| 2024 | −0.4% | −1.9% | 1.5% | −3.2% | 2.2% | 0.6% | 2.6% | 1.9% | 2.0% | −3.2% | 1.8% | −2.7% | 0.9% |
| 2023 | 5.2% | −4.2% | 3.9% | 0.6% | −1.8% | 0.8% | 0.1% | −1.2% | −3.6% | −2.4% | 7.6% | 4.9% | 9.4% |
| 2022 | −3.6% | −2.1% | −2.9% | −6.7% | 1.9% | −3.6% | 4.4% | −4.4% | −6.0% | −0.8% | 6.7% | −1.6% | −17.9% |
| 2021 | −1.8% | −2.3% | −1.5% | 1.0% | 0.6% | 2.2% | 1.4% | −0.3% | −1.5% | 0.5% | −0.1% | 0.0% | −1.8% |
| 2020 | 2.5% | 1.1% | −6.3% | 4.9% | 2.5% | 2.1% | 3.1% | −1.8% | −0.4% | −0.5% | 3.8% | 0.1% | 11.0% |
| 2019 | 3.4% | −0.2% | 2.9% | 0.4% | 1.7% | 3.3% | 0.3% | 3.9% | −0.8% | 0.4% | 0.5% | 0.5% | 17.4% |
| 2018 | −1.2% | −2.2% | 0.6% | −1.6% | 0.5% | −0.5% | 1.3% | 0.0% | −0.1% | −2.1% | −0.4% | 1.9% | −3.8% |
| 2017 | 0.1% | 1.3% | −0.3% | 1.2% | 1.3% | 0.5% | 0.8% | 0.7% | −0.1% | 0.2% | −0.1% | 1.2% | 7.0% |
| 2016 | 0.1% | 1.1% | 3.6% | 1.6% | −0.5% | 3.1% | 1.3% | 0.2% | −0.3% | −1.5% | −3.2% | 0.8% | 6.2% |
| 2015 | 3.8% | −1.4% | 0.2% | −1.2% | −1.1% | −1.9% | 0.8% | −0.8% | 1.2% | 0.6% | −0.1% | −1.1% | −1.3% |
| 2014 | 1.9% | 1.1% | 0.0% | 1.3% | 1.5% | 0.0% | −0.3% | 2.0% | −1.7% | 1.2% | 0.9% | 0.0% | 8.2% |
| 2013 | −1.3% | 1.1% | −0.1% | 2.2% | −3.2% | −3.3% | 1.1% | −1.0% | 0.7% | 1.8% | −0.1% | 0.2% | −2.0% |
| 2012 | 2.1% | 1.6% | −1.4% | 1.1% | 0.8% | 0.9% | 3.5% | −0.1% | 1.1% | 1.4% | −0.7% | −0.3% | 10.2% |
| 2011 | 0.0% | 1.1% | −0.5% | 2.5% | 1.3% | −0.8% | 2.4% | 0.3% | 0.4% | 2.5% | −3.2% | 3.5% | 9.7% |
| 2010 | 1.3% | 0.5% | 0.7% | 1.9% | −1.3% | 3.3% | 2.1% | 2.9% | 0.5% | −0.3% | −1.6% | −0.8% | 9.3% |
| 2009 | −1.8% | −5.2% | 0.5% | 2.8% | 2.3% | 2.9% | 4.6% | 1.3% | 1.8% | −0.5% | 1.9% | −2.1% | 8.5% |
| 2008 | 2.6% | −0.7% | −0.6% | 1.2% | −2.2% | −1.3% | 0.4% | 0.1% | −10.7% | −1.9% | 3.4% | 13.8% | 2.4% |
| 2007 | 0.1% | 2.0% | −0.7% | 0.9% | −1.2% | −0.8% | −0.8% | 2.4% | 0.7% | 1.0% | 1.0% | −0.8% | 3.7% |
| 2006 | −0.4% | 0.7% | −1.7% | −0.2% | −0.2% | −0.1% | 1.5% | 2.2% | 0.9% | 1.0% | 1.5% | −0.9% | 4.2% |
| 2005 | 1.2% | −0.9% | −1.3% | 1.6% | 0.6% | 1.2% | −0.8% | 1.5% | −1.9% | −1.6% | 0.7% | 0.9% | 1.2% |
| 2004 | 1.2% | 1.5% | 1.0% | −3.9% | −0.5% | 0.1% | 1.6% | 3.1% | 0.3% | 1.2% | −1.2% | 1.4% | 5.7% |
| 2003 | −0.8% | 2.0% | 0.1% | 2.4% | 3.9% | −0.2% | −5.8% | 1.5% | 4.5% | −1.3% | 0.3% | 2.6% | 9.1% |
| 2002 (part) |  |  |  |  |  |  | 0.6% | 3.6% | 2.1% | −0.6% | 0.7% | 3.9% | 10.7% |

Each month runs from the last close of the month before. The first month counts from the first close.

## How risky is LQD compared with the S&P 500?

Measured from October 2021 to October 2026, on the days both traded.

- **Beta 0.19.** When the S&P 500 moved 1% in a day, LQD tended to move about 0.19%.
- **Correlation 0.38.** LQD moved mostly on its own, apart from the S&P 500.
- **Up and down months.** In months the S&P 500 rose, LQD rose 33% as much on average. In months it fell, LQD fell 65% as much.

| Measure | LQD | S&P 500 (SPY) |
| --- | --- | --- |
| Return per year | −1.0% | 12.8% |
| Volatility | 8.6% | 17.1% |
| Worst drop | −24.5% | −24.5% |
| Sharpe ratio | -0.07 | 0.79 |
| Sortino ratio | -0.10 | 1.15 |
| Calmar ratio | -0.04 | 0.52 |

Volatility is how much the price swings in a year. The Sharpe ratio is return per unit of volatility, the Sortino ratio counts only the falls, and the Calmar ratio is the return per year over the worst drop. Higher ratios mean more return for the risk taken.

## Is LQD above its 200-day average?

LQD closed 2.4% below its 200-day average on October 16, 2026. A rule that holds LQD only above that average would be out of it today.

- Its 50-day average is 1.8% below its 200-day average.
- It closed 4.5% below its highest close of the last 52 weeks.

A moving average is the average close over the last so many days. Trend rules such as [the 10-month moving average strategy](https://tactfolio.com/strategies/faber-10-month-moving-average.md) hold a fund only while it is above one. You can [build that rule for LQD](https://tactfolio.com/builder) and backtest it in a minute.

## What was LQD's worst drop?

A drawdown is how far a fund falls from its last high point. LQD's worst fall was −24.9%, from September 22, 2021 to October 20, 2022. By October 16, 2026 it had not yet climbed back to that high. On October 16, 2026 it was 6.8% below its highest close.

| Drop | Started | Bottom | Back to the high | Fall took | Recovery took |
| --- | --- | --- | --- | --- | --- |
| −24.9% | Sep 22, 2021 | Oct 20, 2022 | Not yet | 13 months | n/a |
| −21.8% | Mar 6, 2020 | Mar 19, 2020 | Jun 10, 2020 | 13 days | 3 months |
| −21.5% | May 1, 2008 | Sep 29, 2008 | Jan 9, 2009 | 5 months | 3 months |
| −10.9% | Jan 9, 2009 | Mar 9, 2009 | Jun 25, 2009 | 2 months | 4 months |
| −8.6% | May 2, 2013 | Jun 24, 2013 | May 1, 2014 | 2 months | 10 months |

Big drops are normal for some funds. They matter because selling during a drop locks in the loss.

## What does LQD hold?

This fund holds bonds that companies sell to borrow money, in US dollars. These companies have credit ratings that count as investment grade, which means they are seen as more likely to pay back. The fund pays out interest income each month, and its price falls when interest rates rise.

It tracks the iBoxx USD Liquid Investment Grade Index. It had 3,171 holdings as of October 15, 2026, according to iShares (BlackRock).

| Fact | LQD |
| --- | --- |
| Full name | iShares iBoxx $ Investment Grade Corporate Bond ETF |
| Issuer | iShares (BlackRock) |
| Expense ratio | 0.14% a year |
| Started trading | July 22, 2002 |
| Tracks | iBoxx USD Liquid Investment Grade Index |
| Type | US bonds, ETF |
| Holdings | 3,171 holdings as of October 15, 2026 |
| Facts checked | October 16, 2026 on the [iShares (BlackRock) fund page](https://www.ishares.com/us/products/239566/ishares-iboxx-investment-grade-corporate-bond-etf) |

## What is the LQD expense ratio?

LQD charges 0.14% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.14% fee comes to about $14 a year. Of the 162 ETFs on Tactfolio, 49% charge more.

You never get a bill for it. The fund takes the fee out of its own value a little each day.

## Which Tactfolio strategies hold LQD?

13 classic strategies hold LQD at least some of the time. Each is a set of written rules you can open, test and copy.

- [Bold Asset Allocation (BAA)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022
- [Vigilant Asset Allocation (VAA)](https://tactfolio.com/strategies/vigilant-asset-allocation.md), by Wouter Keller and JW Keuning, 2017
- [Defensive Asset Allocation (DAA)](https://tactfolio.com/strategies/defensive-asset-allocation.md), by Wouter Keller and JW Keuning, 2018
- [Protective Asset Allocation (PAA)](https://tactfolio.com/strategies/protective-asset-allocation.md), by Wouter Keller and JW Keuning, 2016
- [Composite Dual Momentum](https://tactfolio.com/strategies/composite-dual-momentum.md), by Gary Antonacci, 2012
- [Vigilant Asset Allocation G12 (VAA-G12)](https://tactfolio.com/strategies/vigilant-asset-allocation-g12.md), by Wouter Keller and JW Keuning, 2017
- [Bold Asset Allocation G4 (BAA aggressive)](https://tactfolio.com/strategies/bold-asset-allocation-g4.md), by Wouter Keller, 2022
- [GTAA 13: Faber’s 13-asset tactical allocation](https://tactfolio.com/strategies/gtaa-13.md), by Mebane Faber, 2013
- [GTAA Aggressive 3 (Faber GTAA AGG3)](https://tactfolio.com/strategies/gtaa-aggressive-3.md), by Mebane Faber, 2013
- [GTAA Aggressive 6 (Faber GTAA AGG6)](https://tactfolio.com/strategies/gtaa-aggressive-6.md), by Mebane Faber, 2013
- [Trinity Portfolio (Meb Faber)](https://tactfolio.com/strategies/trinity-portfolio.md), by Mebane Faber, 2016
- [Papa Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/papa-bear-portfolio.md), by Brian Livingston, 2018
- [Bond UI1 (Paul Novell’s unemployment bond strategy)](https://tactfolio.com/strategies/novell-bond-ui1.md), by Paul Novell, 2019

## How does LQD compare with similar ETFs?

Funds that can stand in for LQD:

- [VCIT](https://tactfolio.com/etf/VCIT.md): Vanguard Intermediate-Term Corporate Bond ETF, 0.03% a year
- [AGG](https://tactfolio.com/etf/AGG.md): iShares Core U.S. Aggregate Bond ETF, 0.03% a year
- [BND](https://tactfolio.com/etf/BND.md): Vanguard Total Bond Market ETF, 0.03% a year
- [SCHZ](https://tactfolio.com/etf/SCHZ.md): Schwab U.S. Aggregate Bond ETF, 0.03% a year

See [all 8 LQD alternatives](https://tactfolio.com/alternatives/LQD.md), compared on the same dates as LQD.

## Test LQD in your own rules

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the [builder](https://tactfolio.com/builder), add LQD, and see how a rule such as "hold it only above its 200-day average" would have done. Strategies run on daily prices and hold US stocks and ETFs only.

## The details

Prices come from Tactfolio's stored daily prices for LQD and SPY. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns. Beta and correlation compare daily returns with the S&P 500 over the same dates.

Fund facts come from iShares (BlackRock). We checked them on October 16, 2026. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) and [how to read drawdown and CAGR](https://tactfolio.com/docs/concepts/reading-a-backtest.md) for more on these measures.

## Research and test it

- [Portfolio rebalancing](https://tactfolio.com/learn/portfolio-rebalancing): What portfolio rebalancing is, why a 60/40 mix drifts, calendar vs threshold methods, and how taxes and costs fit in.
- [Risk parity](https://tactfolio.com/learn/risk-parity): Risk parity balances risk instead of dollars. See a simple stock and bond example, why funds use leverage, and what went wrong in 2022.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What is the expense ratio of LQD?

LQD charges 0.14% a year, according to iShares (BlackRock) as of October 16, 2026. That is about $14 a year for every $10,000 you hold.

### When did LQD start trading?

LQD started trading on July 22, 2002. It is run by iShares (BlackRock).

### What does LQD track?

LQD tracks the iBoxx USD Liquid Investment Grade Index. This fund holds bonds that companies sell to borrow money, in US dollars.

### How much has LQD returned per year?

From July 2002 to October 2026, LQD returned about 4.4% a year with dividends reinvested. Its worst drop was −24.9%. Past returns do not tell you what it will do next.

### Is LQD above its 200-day moving average?

On October 16, 2026, LQD closed 2.4% below its 200-day moving average. This page updates after each US market close.

### Which strategies use LQD?

13 of Tactfolio's classic strategies hold LQD, including Bold Asset Allocation (BAA), Vigilant Asset Allocation (VAA), Defensive Asset Allocation (DAA).

## Sources

- [iShares (BlackRock): iShares iBoxx $ Investment Grade Corporate Bond ETF fund page](https://www.ishares.com/us/products/239566/ishares-iboxx-investment-grade-corporate-bond-etf)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.