SPLB vs. LQD: Lower Fees and Higher Yield Meet Risk Trade‑Offs

If you’re eyeing investment‑grade corporate bond exposure, two ETFs are worth your attention: SPLB (SPDR Portfolio Long Term Corporate Bond ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF). While both aim at U.S. investment‑grade corporate bonds, they differ meaningfully on cost, yield and risk profile. SPLB stands out with a very low expense ratio of just 0.04%, compared to LQD’s 0.14%. It also currently offers a higher yield — around 5.1% vs. approximately 4.3% for LQD. On the flip side, SPLB has exhibited greater drawdowns and higher volatility in recent years — a 5‑year max drawdown of about 34.5% vs. LQD’s roughly 25%. In short: if you’re after lower fees and higher income and are comfortable with greater interest‑rate or duration risk, SPLB might be the better fit. If you prefer a more conservative option with more established size and somewhat gentler swings, LQD may offer more peace of mind. Remember: past performance isn’t a guarantee of future results. #bondinvesting #ETFcomparison #corporatebonds #lowerfeeshigheryield #SlimScan #GrowthStocks #CANSLIM