ETF Comparison
BND vs LQD: Which Is the Better Pick in 2026?
A head-to-head comparison of Vanguard Total Bond Market ETF and iShares iBoxx $ Investment Grade Corporate Bond ETF covering yield, cost, risk, and income potential.
Data updated April 5, 2026
Side-by-side snapshot
| BND | LQD | |
|---|---|---|
| Full name | Vanguard Total Bond Market ETF | iShares iBoxx $ Investment Grade Corporate Bond ETF |
| Issuer | Vanguard | BlackRock |
| Price | $73.42 | $108.66 |
| Distribution yield | 3.82% | 4.44% |
| Expense ratio | 0.03% | 0.14% |
| AUM | $395.3B | $32.0B |
| Distribution frequency | Monthly | Monthly |
| Underlying index | Bloomberg U.S. Aggregate Float Adjusted Index | Markit iBoxx USD Liquid Investment Grade Index |
| Objective | Track the Bloomberg U.S. Aggregate Float Adjusted Index for broad U.S. bond exposure. | Provide exposure to the fund's underlying index or strategy per issuer materials. |
| Asset class | Fixed Income | Fixed Income |
| Inception date | 04/03/2007 | 07/22/2002 |
| Beta | 0.98 | 1.35 |
| Last dividend | $0.25 | $0.45 |
| Ex-dividend date | 04/01/2026 | 04/01/2026 |
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
BND (Vanguard Total Bond Market ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both popular monthly-pay track the bloomberg u.s. aggregate float adjusted index for broad u.s. bond exposure. ETFs, but they take different approaches.
LQD offers the higher yield at 4.44% vs 3.82% for BND. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
BND is cheaper with an expense ratio of 0.03% compared to 0.14%.
They track different benchmarks: BND is linked to Bloomberg U.S. Aggregate Float Adjusted Index while LQD tracks Markit iBoxx USD Liquid Investment Grade Index, which means their performance drivers differ.
BND is the larger fund by assets ($395.3B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, BND would generate roughly $31.83/month while LQD would produce $37.00/month at current distribution rates. Both pay monthly distributions.
Cost & efficiency
Over 10 years on $10,000, BND would cost approximately $30 in fees vs $140 for LQD (simplified, not compounded). The $110.00 difference may be offset by yield or performance.
Strategy & risk
BND tracks Bloomberg U.S. Aggregate Float Adjusted Index with a track the bloomberg u.s. aggregate float adjusted index for broad u.s. bond exposure. approach, while LQD tracks Markit iBoxx USD Liquid Investment Grade Index using a provide exposure to the fund's underlying index or strategy per issuer materials. strategy. Beta is 0.98 for BND and 1.35 for LQD, indicating BND is less volatile relative to the market.
Fund details
BND is managed by Vanguard (launched 04/03/2007) with $395.3B in assets. LQD is managed by BlackRock (launched 07/22/2002) with $32.0B in assets.
Income calculator
See how much monthly income a hypothetical investment would generate in each ETF at current yields.
Frequently asked questions
Is BND or LQD better for dividend income?
It depends on your goals. LQD currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between BND and LQD?
BND (Vanguard Total Bond Market ETF) tracks Bloomberg U.S. Aggregate Float Adjusted Index with a track the bloomberg u.s. aggregate float adjusted index for broad u.s. bond exposure. strategy, while LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) tracks Markit iBoxx USD Liquid Investment Grade Index with a provide exposure to the fund's underlying index or strategy per issuer materials. approach. They are issued by Vanguard and BlackRock respectively.
Can I hold both BND and LQD?
Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.
Which has lower fees, BND or LQD?
BND has an expense ratio of 0.03% while LQD charges 0.14%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in BND vs LQD generate?
At current yields, $10,000 in BND would generate roughly $31.83 per month ($382.00 annually). The same in LQD would produce about $37.00 per month ($444.00 annually).
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