BND vs LQD
Vanguard Total Bond Market Index Fund vs iShares iBoxx $ Investment Grade Corporate Bond ETF
Last updated: 2026-04-02
Vanguard Total Bond Market Index Fund (BND) is an exchange-traded fund issued by Vanguard that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.93%. 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
BND is significantly cheaper at 0.03% vs 0.14% expense ratio, saving you approximately $218 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (-0.0% vs 0.0%), tracking closely. Income investors may prefer LQD for its higher yield (4.5% vs 3.9%).
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 BND if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose LQD if...
you prioritize dividend income and want higher regular distributions from your portfolio.