SPLB Offers Higher Yield and Lower Fees, While LQD May Help Limit Risk

Core Insights - The iShares iBoxx Investment Grade Corporate Bond ETF (LQD) and State Street SPDR Portfolio Long Term Corporate Bond ETF (SPLB) are both focused on U.S. investment-grade corporate bonds but differ in fees, yield, and risk profile [1] Cost & Size Comparison - LQD has an expense ratio of 0.14%, while SPLB has a lower expense ratio of 0.04% [2] - As of November 6, 2025, LQD has a 1-year return of 1.34%, whereas SPLB has a negative return of -1.04% [2] - SPLB offers a higher dividend yield of 5.13% compared to LQD's 4.35% [2] - LQD has assets under management (AUM) of $31.79 billion, significantly larger than SPLB's AUM of $908.06 million [2] Performance & Risk Comparison - Over the past five years, LQD experienced a maximum drawdown of 24.96%, while SPLB had a higher maximum drawdown of 34.47% [3] - An investment of $1,000 in LQD would have grown to $810.94, compared to $705.61 for SPLB over the same period [3] Portfolio Composition - SPLB focuses on long-term investment-grade U.S. corporate bonds with maturities of 10 years or more, holding 2,960 securities [4] - LQD provides exposure to a broader range of investment-grade corporate bonds across different maturities, with a slightly larger portfolio of 2,998 holdings [4] - Both funds offer significant diversification without notable sector tilts [4] Investment Considerations - SPLB has advantages in fees and dividend yield, making it appealing for income-focused investors [7] - LQD is positioned as a lower-risk option with a smaller maximum drawdown and lower beta, which may attract more risk-averse investors [8]