LQD vs. SCHQ: Why the "Safer" Bond Fund Has Not Always Been the Better Choice

A comparison of two bond ETFs reveals that while SCHQ (Schwab Long-Term U.S. Treasury ETF) offers lower costs and higher yields, LQD (iShares iBoxx Investment Grade Corporate Bond ETF) has delivered superior returns with lower volatility over the past five years. Despite Treasuries being traditionally viewed as safer, LQD proved more resilient during recent interest rate increases, outperforming SCHQ with smaller drawdowns.