XLB vs LQD — 23-Year Performance Comparison
Materials vs Investment-Grade Corp Bonds — backtested 2002–2024
XLB wins$64,856 vs $26,647 on $10,000 over 23 years
XLBMaterials
Final value$64,856
CAGR+8.5%
Max drawdown-44.9%
Best year+48% (2009)
Years won17 of 23
LQDInvestment-Grade Corp Bonds
Final value$26,647
CAGR+4.4%
Max drawdown-19.4%
Best year+17% (2019)
Years won6 of 23
Growth of $10,000
2002–2024XLBLQD
XLB$64,856
LQD$26,647
50/50 mix$46,114
50/50 blend: $46,114 (+6.9%/yr CAGR)
Splitting equally between XLB and LQD would have landed between the two — slightly lower CAGR than XLB but less volatility. Try a custom split →
Year-by-year: XLB vs LQD
| Year | XLB | LQD | Winner |
|---|---|---|---|
| 2024 | +6.5% | +0.9% | XLB |
| 2023 | +11.9% | +9.4% | XLB |
| 2022 | -13.8% | -17.9% | XLB |
| 2021 | +27.3% | -1.8% | XLB |
| 2020 | +20.6% | +11.0% | XLB |
| 2019 | +24.5% | +17.4% | XLB |
| 2018 | -14.7% | -3.8% | LQD |
| 2017 | +22.1% | +7.1% | XLB |
| 2016 | +17.4% | +6.2% | XLB |
| 2015 | -8.0% | -1.3% | LQD |
| 2014 | +6.9% | +8.2% | LQD |
| 2013 | +25.6% | -2.0% | XLB |
| 2012 | +15.4% | +10.6% | XLB |
| 2011 | -9.8% | +9.7% | LQD |
| 2010 | +20.5% | +9.3% | XLB |
| 2009 | +47.6% | +8.4% | XLB |
| 2008 | -44.9% | +2.4% | LQD |
| 2007 | +22.9% | +3.7% | XLB |
| 2006 | +22.4% | +4.2% | XLB |
| 2005 | +11.0% | +1.2% | XLB |
| 2004 | +13.0% | +5.7% | XLB |
| 2003 | +22.7% | +7.3% | XLB |
| 2002 | -7.4% | +9.9% | LQD |
More comparisons
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