LQD vs VNQ — 20-Year Performance Comparison
Investment-Grade Corp Bonds vs Real Estate (REIT) — backtested 2005–2024
VNQ wins$37,027 vs $21,378 on $10,000 over 20 years
LQDInvestment-Grade Corp Bonds
Final value$21,378
CAGR+3.9%
Max drawdown-19.4%
Best year+17% (2019)
Years won7 of 20
VNQReal Estate (REIT)
Final value$37,027
CAGR+6.8%
Max drawdown-47.3%
Best year+41% (2021)
Years won13 of 20
Growth of $10,000
2005–2024LQDVNQ
LQD$21,378
VNQ$37,027
50/50 mix$30,449
50/50 blend: $30,449 (+5.7%/yr CAGR)
Splitting equally between LQD and VNQ would have landed between the two — slightly lower CAGR than VNQ but less volatility. Try a custom split →
Year-by-year: LQD vs VNQ
| Year | LQD | VNQ | Winner |
|---|---|---|---|
| 2024 | +0.9% | +4.8% | VNQ |
| 2023 | +9.4% | +11.8% | VNQ |
| 2022 | -17.9% | -26.2% | LQD |
| 2021 | -1.8% | +40.5% | VNQ |
| 2020 | +11.0% | -4.7% | LQD |
| 2019 | +17.4% | +28.9% | VNQ |
| 2018 | -3.8% | -6.0% | LQD |
| 2017 | +7.1% | +4.9% | LQD |
| 2016 | +6.2% | +8.6% | VNQ |
| 2015 | -1.3% | +2.4% | VNQ |
| 2014 | +8.2% | +30.4% | VNQ |
| 2013 | -2.0% | +2.3% | VNQ |
| 2012 | +10.6% | +17.6% | VNQ |
| 2011 | +9.7% | +8.6% | LQD |
| 2010 | +9.3% | +28.4% | VNQ |
| 2009 | +8.4% | +30.1% | VNQ |
| 2008 | +2.4% | -37.0% | LQD |
| 2007 | +3.7% | -16.3% | LQD |
| 2006 | +4.2% | +35.2% | VNQ |
| 2005 | +1.2% | +11.6% | VNQ |
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