ETF Versus

IJR vs LQD

iShares Core S&P Small-Cap ETF vs iShares iBoxx $ Investment Grade Corporate Bond ETF

Last updated: 2026-04-02

IJR iShares

iShares Core S&P Small-Cap ETF (IJR) is an exchange-traded fund issued by iShares that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a low expense ratio of 0.06%. The fund offers a moderate dividend yield of 1.28%. Launched in 2000, the fund has a 26-year track record.

AUM: $90.2B ER: 0.06% Yield: 1.28% Since: May 22, 2000
LQD iShares

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.

AUM: $29.2B ER: 0.14% Yield: 4.53% Since: Jul 22, 2002

Quick Verdict

IJR has a slightly lower expense ratio (0.06% vs 0.14%), saving about $159 per $10,000 over 10 years. Over the past year, IJR has significantly outperformed with a 19.2% return vs 0.0%. Income investors may prefer LQD for its higher yield (4.5% vs 1.3%).

Key Metrics

Metric IJR LQD
Expense Ratio 0.06% 0.14%
Dividend Yield 1.3% 4.5%
Fund Family iShares iShares
Category US Small Cap US Investment Grade Corporate

Performance Chart

Indexed to 100 at start (5-year comparison)

75 84 93 102 111 120 2021-04 2022-06 2023-09 2024-12 2026-04
IJR +13.0%
LQD -16.4%

Performance Comparison

Period IJR LQD Difference
1 Month -4.33% -2.04% -2.29%
3 Months +2.92% -1.36% +4.28%
6 Months +4.03% -2.59% +6.62%
YTD +2.92% -1.36% +4.28%
1 Year +19.20% +0.00% +19.20%
3 Years +29.06% -1.16% +30.22%
5 Years +12.98% -16.40% +29.38%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IJR Fees LQD Fees You Save
$10.000 10 years $120 $278 $159
$10.000 20 years $515 $1.194 $678
$10.000 30 years $1.664 $3.841 $2.177
$50.000 10 years $598 $1.391 $793
$50.000 30 years $8.318 $19.203 $10.885
$100.000 30 years $16.637 $38.406 $21.769

Risk Metrics

Based on 5 years of daily returns

Metric IJR LQD
Annualized Volatility 21.6% 8.7%
Max Drawdown -28.9% -27.9%
Sharpe Ratio 0.01 -0.89

Dividend Comparison

Metric IJR LQD
Annual Dividend (per share) $1.60 $4.92
Dividend Yield 1.28% 4.53%
Distribution Frequency Quarterly Monthly

Top Holdings

IJR Top Holdings

NameWeight
BLK CSH FND TREASURY SL AGENCYXTSLA1.37%
Eastman Chemical CompanyEMN0.54%
Viavi Solutions Inc.VIAV0.53%
Argan, Inc.AGX0.52%
Primoris Services CorporationPRIM0.52%
FormFactor, Inc.FORM0.51%
Element Solutions IncESI0.51%
LKQ CorporationLKQ0.50%
SM Energy CompanySM0.49%
ESCO Technologies Inc.ESE0.48%

Which One Should You Choose?

Choose IJR if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose IJR if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose LQD if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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