IGLB vs LQD: Which Corporate Bond ETF Fits Your Portfolio?
IGLB targets long-duration bonds with a 5.5% yield and lower costs, while LQD spans all maturities with broader diversification and less volatility.
Overview
iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEMKT:LQD) offers broad corporate debt exposure across various maturities, while iShares 10+ Year Investment Grade Corporate Bond ETF (NYSEMKT:IGLB) focuses exclusively on long-term bonds with at least 10 years to maturity.
Both funds allow investors to access the investment-grade corporate bond market, but they target different segments of the yield curve. This comparison explores how their maturity profiles affect risk, cost, and historical performance for those looking to fine-tune their fixed-income allocations.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Originally published at www.fool.com.