HYG vs LQD
iShares iBoxx $ High Yield Corporate Bond ETF vs iShares iBoxx $ Investment Grade Corporate Bond ETF
Last updated: 2026-04-10
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is an exchange-traded fund issued by iShares that provides exposure to below-investment-grade U.S. corporate bonds offering higher yields. It charges an above-average expense ratio of 0.49%. The fund offers a high dividend yield of 5.82%. Launched in 2007, the fund has a 19-year track record.
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is an exchange-traded fund issued by iShares that provides exposure to investment-grade U.S. corporate bonds. It charges a low expense ratio of 0.14%. The fund offers a high dividend yield of 4.53%. Launched in 2002, the fund has a 24-year track record.
Quick Verdict
LQD is significantly cheaper at 0.14% vs 0.49% expense ratio, saving you approximately $682 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (4.7% vs 3.9%), tracking closely. Income investors may prefer HYG for its higher yield (5.8% vs 4.5%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Which One Should You Choose?
Choose LQD if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose HYG if...
you prioritize dividend income and want higher regular distributions from your portfolio.