LQD observed max drawdown: 23.3%
iShares Investment Grade Corporate Bond ETF. From its 2020-12-31 peak, LQD fell 23.3% to the 2022-10-31 trough and has not yet made a new high. Computed from 290 months of observed fund history. Fund inception boundary (first available fund observation): 2002-07-26; the monthly analysis runs from 2002-07-31 through 2026-08-31.
Before 2002-07-26, the extended history is simulated. Observed fund drawdowns come first; simulation assumptions and results are separated below.
What is LQD's observed maximum drawdown?
LQD's observed maximum drawdown was 23.3%, from a peak in 2020-12-31 to a trough in 2022-10-31, based on monthly closes from fund prices first observed on 2002-07-26. The sample contains 290 monthly observations through 2026-08-31. Monthly closes can miss deeper daily losses.
| Measure | Value |
|---|---|
| Maximum drawdown | -23.3% |
| Peak | 2020-12-31 |
| Trough | 2022-10-31 |
| Recovered | Not yet recovered |
| Monthly observations | 290 |
Last verified
What is LQD's observed maximum drawdown?
LQD's observed maximum drawdown was 23.3%, from a peak in 2020-12-31 to a trough in 2022-10-31, based on monthly closes from fund prices first observed on 2002-07-26.
How long did LQD take to recover from its worst drawdown?
LQD has not yet recovered from its worst observed drawdown, which began at the 2020-12-31 peak.
What was LQD's worst 12-month return?
LQD's worst observed rolling 12-month return was -21.9%, in the 12 months ending 2022-10-31.
LQD observed fund drawdown statistics
2020-12-31 peak to 2022-10-31 trough.
Still below the prior peak.
Share of all months spent below a prior high.
Rolling year ending 2022-10-31.
The biggest LQD drawdowns in observed fund history
| Depth | Peak | Trough | Recovered | Peak to trough | Total underwater |
|---|---|---|---|---|---|
| -23.3% | 2020-12-31 | 2022-10-31 | not yet | 22 mo | 5.7 years |
| -15.1% | 2008-01-31 | 2008-10-31 | 2009-06-30 | 9 mo | 17 months |
| -6.4% | 2013-04-30 | 2013-06-30 | 2014-04-30 | 2 mo | 12 months |
| -6.4% | 2003-05-31 | 2003-07-31 | 2004-01-31 | 2 mo | 8 months |
| -6.3% | 2020-02-29 | 2020-03-31 | 2020-05-31 | 1 mo | 3 months |
Methodology: observed LQD fund prices only, first available from 2002-07-26. Monthly closing-price statistics cover 2002-07-31 through 2026-08-31; no proxy or pre-inception simulation is included in this table. Educational information, not investment advice.
Before 2002-07-26: simulated from the underlying index with assumptions
This separate series combines observed prices with a modeled pre-inception extension from 1970-01-31 through 2026-09-30. The 2026-09-30 endpoint is the legacy current partial-month bucket/month-end label, not evidence that LQD was observed through that future date. It is not observed LQD performance. The API's observed boundary is 2002-07-26; observed monthly statistics run from 2002-07-31 through 2026-08-31.
- Rebalancing convention: monthly rebalance at month-end close; drawdown statistics use monthly closing prices.
- Proxy source for LQD: PIGIX (proxy_etf), from 2000-05-01 to 2002-07-25.
- Proxy source for LQD: VWESX (proxy_etf), from 1980-01-02 to 2000-04-28.
- Proxy source for LQD: us_corp_bond (static_monthly), from 1920-01-31 to 1980-01-01.
- Proxy source for SPY: VFINX (proxy_etf), from 1976-08-31 to 1993-01-28.
- Proxy source for SPY: spy_tr (static_monthly), from 1900-01-31 to 1976-08-30.
Modeled extended statistics
1979-08-31 peak to 1981-09-30 trough.
New high reached 1991-02-28.
Share of all months spent below a prior high.
Rolling year ending 2022-10-31.
For context, SPY (the S&P 500 baseline) had a maximum drawdown of 50.8% over the same kind of monthly-close analysis.
Modeled extended drawdowns
| Depth | Peak | Trough | Recovered | Peak to trough | Total underwater |
|---|---|---|---|---|---|
| -25.2% | 1979-08-31 | 1981-09-30 | 1991-02-28 | 25 mo | 11.5 years |
| -23.3% | 2020-12-31 | 2022-10-31 | not yet | 22 mo | 5.8 years |
| -15.1% | 2008-01-31 | 2008-10-31 | 2009-06-30 | 9 mo | 17 months |
| -8.8% | 1994-01-31 | 1994-10-31 | 1995-04-30 | 9 mo | 15 months |
| -7.2% | 1999-01-31 | 1999-08-31 | 2000-10-31 | 7 mo | 21 months |
Monthly closing prices, peak-to-trough on total return where available. The pre-inception segment is a reconstruction, not a live fund record, and actual tracking, financing, taxes, spreads, and volatility drag can differ.
Drawdowns are the reason tactical strategies exist
Buy-and-hold LQD means living through every number on this page. BestFolio tracks published TAA strategies whose whole job is cutting these drawdowns, with out-of-sample track records.