ETF Versus

IVV vs LQD

iShares Core S&P 500 ETF vs iShares iBoxx $ Investment Grade Corporate Bond ETF

Last updated: 2026-04-02

IVV iShares

iShares Core S&P 500 ETF (IVV) is an exchange-traded fund issued by iShares that provides exposure to large-cap U.S. equities across growth and value styles. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.23%. Launched in 2000, the fund has a 26-year track record.

AUM: $702.1B ER: 0.03% Yield: 1.23% Since: May 15, 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

IVV is significantly cheaper at 0.03% vs 0.14% expense ratio, saving you approximately $218 per $10,000 invested over 10 years. Over the past year, IVV has significantly outperformed with a 16.7% return vs 0.0%. Income investors may prefer LQD for its higher yield (4.5% vs 1.2%).

Key Metrics

Metric IVV LQD
Expense Ratio 0.03% 0.14%
Dividend Yield 1.2% 4.5%
Fund Family iShares iShares
Category US Large Cap Blend US Investment Grade Corporate

Performance Chart

Indexed to 100 at start (5-year comparison)

75 95 115 135 155 175 2021-04 2022-06 2023-09 2024-12 2026-04
IVV +61.3%
LQD -16.4%

Performance Comparison

Period IVV LQD Difference
1 Month -4.55% -2.04% -2.51%
3 Months -4.10% -1.36% -2.74%
6 Months -2.14% -2.59% +0.45%
YTD -4.10% -1.36% -2.74%
1 Year +16.72% +0.00% +16.72%
3 Years +59.51% -1.16% +60.67%
5 Years +61.35% -16.40% +77.75%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IVV Fees LQD Fees You Save
$10.000 10 years $60 $278 $218
$10.000 20 years $258 $1.194 $935
$10.000 30 years $835 $3.841 $3.005
$50.000 10 years $299 $1.391 $1.092
$50.000 30 years $4.176 $19.203 $15.027
$100.000 30 years $8.352 $38.406 $30.054

Risk Metrics

Based on 5 years of daily returns

Metric IVV LQD
Annualized Volatility 16.9% 8.7%
Max Drawdown -25.4% -27.9%
Sharpe Ratio 0.39 -0.89

Dividend Comparison

Metric IVV LQD
Annual Dividend (per share) $8.06 $4.92
Dividend Yield 1.22% 4.53%
Distribution Frequency Quarterly Monthly

Top Holdings

IVV Top Holdings

NameWeight
NVIDIA CorporationNVDA7.45%
Apple Inc.AAPL6.68%
Microsoft CorporationMSFT4.85%
Amazon.com, Inc.AMZN3.56%
Broadcom Inc.AVGO2.61%
Alphabet Inc.GOOG2.34%
Meta Platforms, Inc.META2.10%
Tesla, Inc.TSLA1.86%
Berkshire Hathaway Inc.BRK.B1.57%

Which One Should You Choose?

Choose IVV if...

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

Choose IVV 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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