Data as of Oct 28, 2026.
LQD vs VTIP: Differences, Returns & Fees
LQD's duration was 7.7 years on Aug 31, 2026 and VTIP's 2.3 on Jun 30, 2026; VTIP charges 0.03% to LQD's 0.14%.
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Net assets: $30.6bn on Oct 27, 2026 for iShares iBoxx $ Investment Grade Corporate Bond ETF, and $20.9bn on Sep 30, 2026 for Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares.
Pair scorecard
VTIP costs 0.11 points a year less; their one-year returns differ by 5.6 points; LQD is 1.4 times larger.
| Measure | LQD | VTIP |
|---|---|---|
| Return | ||
| Total return, 1 year | −3.4% | +2.2% |
| Drawdown | ||
| Below its high | 6.3%, high on Sep 22, 2021 | |
| Benchmark | ||
| What it tracks | Markit iBoxx USD Liquid Investment Grade Index | Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index |
| Cost and size | ||
| Expense ratio | 0.14% | 0.03% |
| Net assets, as of Sep 30, 2026 | $28.3bn | $20.9bn |
| Holdings | ||
| Holdings in common | 0% | |
Holdings in common uses holdings dated Jun 30, 2026 and Aug 31, 2026. Method
Risk and return
Oct 26, 2012 to Oct 23, 2026 · 730 weekly returnsLQD returned slightly more: +39.1% to +35.7%. VTIP swung less: 2.3% to 9.0%. VTIP fell less at its worst: −5.5% to −24.7%.
Full scorecard
9 measures, with how each is measured Open ↓
| Measure | LQD | VTIP | Edge | How it is measured |
|---|---|---|---|---|
| Return | ||||
| Total return | +39.1% | +35.7% | LQD (slight) | Price change plus distributions, reinvested. |
| Annualized | +2.4% | +2.2% | LQD (slight) | Total return as a yearly rate. |
| Price return | −15.3% | −2.1% | VTIP | Price change alone, distributions left out. |
| Risk | ||||
| Volatility | 9.0% | 2.3% | VTIP | Spread of weekly returns, annualized. Lower is steadier. |
| Downside deviation | 6.4% | 1.7% | VTIP | Like volatility, counting only weeks below the Treasury bill rate. |
| Max drawdown | −24.7% | −5.5% | VTIP | Deepest fall from a high to the low after it. |
| Risk-adjusted | ||||
| Sharpe | 0.10 | 0.17 | VTIP | Return above Treasury bills per unit of volatility. |
| Sortino | 0.15 | 0.22 | VTIP | Return above Treasury bills per unit of downside deviation. |
| Calmar | 0.10 | 0.40 | VTIP | Annualized return divided by the max drawdown. |
Computed by ETFIQ from Tiingo daily prices and ETFIQ's distribution records, 730 weekly returns. Cash rate: the 13-week Treasury bill.
What they share
By the books each fund has filed, LQD and VTIP hold 0% of their money in the same securities at the same weight. Holdings dated Jun 30, 2026 and Aug 31, 2026.
half
0% in common
Only in one fund ↓
Side by side
LQD and VTIP on the fields both publish, as of Oct 28, 2026. Source: ETFIQ.
LQD and VTIP do different jobs. What does each one do in a portfolio?
- What each follows. LQD follows Markit iBoxx USD Liquid Investment Grade Index and VTIP follows Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index.
- Holdings in common. 0% of the weight is in the same securities (holdings dated Aug 31, 2026 and Jun 30, 2026).
- One-year total return. Over 1 year to Oct 28, 2026 LQD returned −3.4% and VTIP +2.2% with distributions reinvested, a gap of 5.6 points.
Data as of Oct 28, 2026.
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LQD
LQD tracks an index of US investment grade bonds. Over the year to Oct 28, 2026 it returned −3.4% with distributions reinvested, against −1.2% for its benchmark, the Bloomberg U.S. Universal Index. The prospectus expense ratio is 0.14% a year. It sat 6.3% below its high of Sep 22, 2021 on Oct 28, 2026.
VTIP
VTIP tracks an index of Short-Term Inflation-Protected Securities. Over the year to Oct 28, 2026 it returned +2.2% with distributions reinvested. The prospectus expense ratio is 0.03% a year.
Questions people ask
- Which returned more over the last year, LQD or VTIP?
- In the year to Oct 28, 2026, with distributions reinvested, LQD returned −3.4% and VTIP +2.2%.
- Which is cheaper, LQD or VTIP?
- VTIP is cheaper, by 0.11 percentage points a year. That is about $11 on $10,000 held for a year. Fees come from each fund's prospectus.
Links are sources, not endorsements. A comparison is not a recommendation.
How this is computed
Overlap adds up the smaller of the two weights for each security both funds hold.
Cite this pageCitation, APA and Markdown
ETFIQ, LQD against VTIP, data as of Oct 28, 2026. https://etfiq.com/compare/any/lqd-vs-vtip
ETFIQ. (Oct 28, 2026). LQD against VTIP. Retrieved from https://etfiq.com/compare/any/lqd-vs-vtip
[LQD against VTIP (ETFIQ, Oct 28, 2026)](https://etfiq.com/compare/any/lqd-vs-vtip)
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