LQD and SPLB Diverge on Cost, Yield, and Interest-Rate Risk
The analysis highlights LQD’s broad corporate mix versus SPLB’s 10‑plus‑year focus that heightens rate‑driven volatility.
Overview
- SPLB charges a 0.04% expense ratio versus 0.14% for LQD, trading lower cost for a smaller asset base of $1.2 billion versus LQD’s $28.5 billion.
- Over the past year to Mar. 2, 2026, LQD returned 6.4% compared with 4.8% for SPLB.
- SPLB offers a higher dividend yield at 5.2% against LQD’s 4.5%.
- Five‑year risk metrics show deeper drawdowns for SPLB at 34.45% versus 24.96% for LQD, with $1,000 growing to $746 for SPLB and $845 for LQD.
- LQD spans 3,092 investment‑grade corporate bonds with heavy liquidity above 30 million shares traded daily, while SPLB holds about 2,952 long‑maturity issues that amplify interest‑rate sensitivity.