What did LQD do before 2002?

Before Aug 2002 the series is VFICX's. Those 8.8 years (Nov 1993–Jul 2002) show 6.6% a year with 4.5% annualized volatility and a worst drawdown of -6.2% (Jan 1994–Nov 1994). In major S&P 500 declines: 1998 LTCM sell-off, 1.5% versus -15.3% for the S&P 500 (VFICX); 2000–02 dot-com bear, 26.4% versus -44.7% for the S&P 500 (partly VFICX). The full extended history's worst drawdown is -23.3% (Dec 2020–Oct 2022).

How closely does VFICX track LQD?

Over 290 overlapping months (Aug 2002–Sep 2026), VFICX had a correlation of 0.917 with LQD, a tracking error of 3.6% a year and a tracking difference of -0.18% a year (grade: approximate).

How far back can you test LQD? To Nov 1993, with VFICX

Computed by the MarketHeist portfolio engine · Published 2026-10-10 · Updated 2026-10-10 · Data through Sep 2026

LQD (Investment-Grade Corporate Bonds) has its own monthly data from Aug 2002. Spliced with VFICX it reaches back to Nov 1993, which adds 8.8 years (27% of the extended history comes from proxies). Data through Sep 2026.

What you'd have missed

LQD's own data starts in Aug 2002; VFICX extends it to Nov 1993, 8.8 more years.
Its own history misses the 1998 LTCM sell-off and only partly covers the 2000–02 dot-com bear.
Its worst drawdown, -23.3% (Dec 2020–Oct 2022), is already inside the ETF's own history; the extension does not change the worst case.

How the history is built

LQD (ETF) Aug 2002 → now

VFICX (Vanguard Intermediate-Term Investment-Grade Fund, mutual fund) used Nov 1993 → Jul 2002; its own data runs Nov 1993 → now

Nov 1993Sep 2026

Solid bars are the months each fund contributes to the spliced series; the outline shows how far a proxy's own data runs. Each month uses the youngest fund that has data for it; returns are spliced, not prices (dividends reinvested via adjusted close).

How well each proxy tracked LQD

Proxy	Kind	Months contributed	Overlap with LQD	Correlation	Tracking error	Tracking difference	Beta	Vol ratio	Grade
VFICXVanguard Intermediate-Term Investment-Grade Fund	mutual fund	Nov 1993–Jul 2002105 months	Aug 2002–Sep 2026290 months	0.917	3.61%	-0.18%	0.63	0.69	Approximate

Statistics are over the months a proxy and LQD both have data. Tracking error is annualized; tracking difference is the annualized geometric gap (positive: the proxy earned more). Page grade: approximate, the worst grade among the proxies that contribute months.

LQD's own history versus the extended history

	The ETF's own history	Proxy years only	Full extended history
Window	Aug 2002 – Sep 202624.2 years	Nov 1993 – Jul 20028.8 years	Nov 1993 – Sep 202632.9 years
Growth of $10,000	$27,917	$17,496	$48,844
CAGR	4.3%	6.6%	4.9%
Annualized volatility	7.9%	4.5%	7.2%
Sharpe ratio (risk-free 0%)	0.58	1.44	0.71
Max drawdown	-23.3%Dec 2020 → Oct 2022; not yet recovered	-6.2%Jan 1994 → Nov 1994; recovered Apr 1995	-23.3%Dec 2020 → Oct 2022; not yet recovered
Worst complete calendar year	2022 (-17.9%)	1994 (-4.2%)	2022 (-17.9%)
Best complete calendar year	2019 (17.4%)	1995 (21.5%)	1995 (21.5%)
Longest underwater (months)	69	16	69
Major declines covered	3 + 1 partly	1 + 1 partly	5

The columns cover different years, so a higher or lower CAGR is not a verdict on the fund; the point is which market regimes each window includes. Growth of $10,000 is the same one-asset, buy-and-hold calculation the live portfolio app makes.

Growth of $10,000

Log scale, so the early decades are not flattened. Grey is the proxy period; blue is LQD's own data. Dashed lines mark where each fund's returns begin.

Drawdowns

Decline from the prior peak at month-end, the "underwater" curve.

How LQD did in each major US stock-market decline since 1985

Decline	S&P 500	LQD over the same months	Source of those months
1987 crashSep 1987–Nov 1987	-29.8%	not covered	before available data
1998 LTCM sell-offJul 1998–Aug 1998	-15.3%	1.5%	VFICX
2000–02 dot-com bearSep 2000–Sep 2002	-44.7%	26.4%	partly VFICX
2007–09 financial crisisNov 2007–Feb 2009	-50.8%	-4.5%	ETF
2020 COVID crashJan 2020–Mar 2020	-19.4%	-3.0%	ETF
2022 inflation bearJan 2022–Sep 2022	-23.9%	-21.2%	ETF

The decline windows are computed, not chosen: every peak-to-trough fall of at least 15% (month-end) in the S&P 500 series since 1985. The fund's figure compounds its monthly returns from the month after the S&P 500's peak through the trough.

LQD's own five deepest drawdowns (extended history)

Peak	Trough	Depth	Recovery	Source of the decline months
Dec 2020	Oct 2022	-23.3%	not yet recovered	ETF
Jan 2008	Oct 2008	-15.1%	Jun 2009	ETF
Apr 2013	Jun 2013	-6.4%	Apr 2014	ETF
Feb 2020	Mar 2020	-6.3%	May 2020	ETF
Jan 1994	Nov 1994	-6.2%	Apr 1995	VFICX

This covers declines the equity windows miss, such as the bond bear markets of 1994 and 2022.

Caveats

Before Aug 2002 the returns are VFICX's, after that fund's own costs; the measured gap while both existed is -0.18% a year.
Monthly month-end data: intra-month drawdowns were deeper than shown.
Dividends are reinvested; no taxes or trading costs are modeled.
Our data source's series for VFICX begins Nov 1993; the fund itself may be older.

Test it yourself

Open LQD as a one-asset portfolio in the live app, where every number recomputes from fresh data.

Open LQD (100%) in the portfolio builder →

Used in portfolios: Global Asset Allocation, Wealthfront Classic

Used in guides: Global Asset Allocation, Wealthfront Classic

All fund histories →

Frequently asked questions

How far back does LQD data go?: LQD (Investment-Grade Corporate Bonds) has its own monthly data from Aug 2002. Spliced with VFICX it reaches back to Nov 1993, which adds 8.8 years (27% of the extended history comes from proxies). Data through Sep 2026.
What did LQD do before 2002?: Before Aug 2002 the series is VFICX's. Those 8.8 years (Nov 1993–Jul 2002) show 6.6% a year with 4.5% annualized volatility and a worst drawdown of -6.2% (Jan 1994–Nov 1994). In major S&P 500 declines: 1998 LTCM sell-off, 1.5% versus -15.3% for the S&P 500 (VFICX); 2000–02 dot-com bear, 26.4% versus -44.7% for the S&P 500 (partly VFICX). The full extended history's worst drawdown is -23.3% (Dec 2020–Oct 2022).
How closely does VFICX track LQD?: Over 290 overlapping months (Aug 2002–Sep 2026), VFICX had a correlation of 0.917 with LQD, a tracking error of 3.6% a year and a tracking difference of -0.18% a year (grade: approximate).

Methodology

Source: Yahoo Finance via MarketHeist, monthly adjusted close (dividends reinvested). Months run to the last complete calendar month.
Splice rule: Each month uses the youngest fund that has data for it; returns are spliced, not prices (dividends reinvested via adjusted close).
Numbers: Computed by the MarketHeist portfolio engine as a one-asset, 100% buy-and-hold portfolio, the same calculation the live app makes. Sharpe uses a risk-free rate of 0%. Drawdowns are month-end.
Correlation: Pearson correlation of monthly returns over the months both funds have.
Tracking error: Standard deviation of the monthly return differences (proxy minus LQD) times the square root of 12.
Tracking difference: Annualized geometric return of the proxy minus that of LQD over the overlap. Positive means the proxy earned more.
Beta and vol ratio: Beta is the covariance of the proxy with LQD divided by the variance of LQD; vol ratio is the proxy's standard deviation divided by LQD's.
Grades: Close: correlation of at least 0.95 and tracking error of at most 3%. Approximate: tracking error of at most 8% and either a cash-like fund (volatility of at most 3%) or correlation of at least 0.80 with a vol ratio of at most 1.25. Category stand-in: anything weaker.
Generated: 2026-10-10; data through Sep 2026. Reproduce hash of the full extended one-asset portfolio: d01deb779d6619db

Historical simulation, not investment advice. Past returns, including spliced proxy returns, do not predict future results.