The State Street SPDR Portfolio Long Term Corporate Bond ETF (SPLB 0.45%) and the iShares iBoxx Investment Grade Corporate Bond ETF (LQD 0.50%) differ most on fee structure, yield, and liquidity, with LQD commanding a higher expense ratio but leading in size and trading volume.
Both SPLB and LQD aim to give investors access to a diversified portfolio of U.S. investment-grade corporate bonds, but their approaches and resulting profiles diverge. This comparison spotlights cost, performance, risk, and portfolio composition to help investors decide which may better align with their needs.
Snapshot (cost & size)
| Metric | SPLB | LQD |
|---|---|---|
| Issuer | SPDR | IShares |
| Expense ratio | 0.04% | 0.14% |
| 1-yr return (as of 2026-03-02) | 4.8% | 6.4% |
| Dividend yield | 5.2% | 4.5% |
| Beta | 1.9 | 1.4 |
| AUM | $1.2 billion | $28.5 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
SPLB looks more affordable with a 0.04% expense ratio compared to LQD’s 0.14%, and it also pays a higher dividend yield, which may appeal to income-focused investors willing to trade off some liquidity and scale.
NYSEMKT: LQD
Key Data Points
Performance & risk comparison
| Metric | SPLB | LQD |
|---|---|---|
| Max drawdown (5 y) | (34.45%) | (24.96%) |
| Growth of $1,000 over 5 years | $746 | $845 |
What's inside
LQD tracks a broad portfolio of U.S. dollar-denominated, investment-grade corporate bonds, with 3,092 holdings as of its 23.6-year history. Top positions include bonds from Anheuser-Busch Companies, CVS Health, and Goldman Sachs Group. The fund’s immense size and average daily trading volume over 30 million shares make it one of the most liquid bond ETFs available, with no notable structural quirks.
SPLB, in contrast, focuses on long-term U.S. corporate bonds with maturities of 10 years or more, holding roughly 2,952 issues. Its largest weights are in government money market instruments, U.S. dollars, and a Meta Platforms bond. While both funds skip equity sector bets, SPLB’s narrower maturity focus may result in higher yield but also greater sensitivity to interest rate changes.
For more guidance on ETF investing, check out the full guide at this link.
NYSEMKT: SPLB
Key Data Points
What this means for investors
Both of these funds lend exclusively to investment-grade corporations, but SPLB only buys bonds that won't be repaid for at least 10 years, often much longer. LQD buys corporate bonds across the board, from ones coming due in a couple years to ones stretching decades ahead, creating a balanced mix.
That time difference matters enormously. When interest rates move, SPLB's long-term bonds get hammered or soar dramatically—a small Fed rate change translates into big price swings. You accept that volatility for higher income and the chance at serious gains when rates fall. LQD's mix of short and long bonds smooths out those wild rides, giving you steadier returns but capping your upside when rates drop.
SPLB works if you're betting rates will fall and can stomach watching your investment bounce around violently. It's not for the faint of heart—you're deliberately cranking up interest rate sensitivity for the potential of outsized gains during rate-cutting cycles. LQD suits investors who want corporate bond exposure without making a specific bet on rate direction, as its diversified maturities deliver steadier performance across different interest rate environments.
