BHK vs LQD: Correlation
Blackrock Core Bond Trust (BHK) and iShares iBoxx Investment Grade Corporate Bond ETF (LQD) show a strong relationship: their 3-year correlation of weekly returns is 0.74.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BHK and LQD?
Over the past 3 years, BHK and LQD moved with a correlation of 0.74, which is strong. The relationship has been stable: the 1-year correlation (0.79) sits close to the 3-year figure. Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 66.5 %².
In BHK's tracked universe of 17 assets, LQD sits right near the top at #3. Their 12-month results are close: +4.2% for BHK against +1.5% for LQD. Note the risk asymmetry: BHK runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
BHK vs LQD: side by side
| BHK (Blackrock Core Bond Trust) | LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | |
|---|---|---|
| 1-year return | +4.2% | +1.5% |
| 5-year return | -15.3% | -4.1% |
| Volatility (ann.) | 12.4% | 7.3% |
| Beta vs S&P 500 | 0.28 | 0.15 |
| Max drawdown (3Y) | -16.6% | -6.7% |
| Market cap | – | – |
| P/E (trailing) | 12.9 | – |
| Dividend yield | 9.85% | 4.66% |
| Expense ratio | – | 0.14% |
| Assets under management | – | $33.0B |
| Sector / category | US Listed | ETF · Bonds |
LQD, iShares's Corporate Bond fund, carries $33.0B under management, a 0.14% expense ratio, a 4.66% trailing dividend yield.
Year-by-year returns
| Year | BHK | LQD |
|---|---|---|
| 2022 | -32.6% | -17.9% |
| 2023 | +14.3% | +9.4% |
| 2024 | +3.9% | +0.9% |
| 2025 | +0.3% | +7.9% |
| 2026 | +1.6% | -0.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BHK and LQD good diversifiers for each other?
To a limited degree. At 0.74 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between BHK and LQD?
Using weekly returns as of 2026-08-27: 0.74 over 3 years, with 0.79 over the last year and 0.70 over 5 years.
Is LQD a good diversifier for BHK?
To a limited degree. At 0.74 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.74 mean?
On the −1 to +1 scale, 0.74 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bhk-vs-lqd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/bhk-vs-lqd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: BHK correlations · LQD correlations
