The State Street SPDR Portfolio Long Term Corporate Bond ETF (SPLB) offers lower fees and higher yields than the iShares iBoxx Investment Grade Corporate Bond ETF (LQD). SPLB focuses on longer maturities, resulting in a deeper drawdown but weaker long-term total returns. Both funds track investment-grade corporate bonds, making them core fixed income options.

SPLB has a 0.04% expense ratio, significantly lower than LQD’s 0.14%, and a higher yield, appealing to income-focused investors. LQD, with a larger asset size, has weathered tough bond markets better. Both ETFs provide exposure to U.S. investment-grade corporate bonds, with SPLB emphasizing longer maturities.

SPLB holds investment-grade, U.S. corporate bonds with maturities over 10 years, resulting in a portfolio of 2,953 holdings and a 16.8-year fund life. LQD spans all maturities with 3,002 holdings, making it more resilient to recent market volatility. SPLB’s long duration contributes to its higher yield but also deeper drawdown.

Corporate bonds are debt securities issued by companies in exchange for cash. LQD and SPLB, ETFs that hold portfolios of corporate bonds, differ in maturity focus. LQD has a broader range of maturities, contributing to its better performance and lower beta. SPLB offers lower fees and higher dividend yield.

Investing in corporate bonds through ETFs like LQD and SPLB can provide predictable income and diversification. LQD’s broader maturity range contributes to its performance, while SPLB’s focus on longer maturities offers higher yield. Consider the expense ratio, dividend yield, and risk exposure when choosing between the two ETFs.

Read more at Yahoo Finance: Investing in Corporate Bonds? One of These ETFs Holds Up Better Long-Term.