Is the LQD suggesting trouble ahead for the broader marketThe investment-grade corporate bond ETF LQD leads the broader market. Off late it has broken down completely exhibiting a
death cross. This spells trouble for the broader market.
Key stats
About ISHARES TRUST IBOXX USD INVESTMENT GRADE CORP BOND ETF
Expense ratio
0.14%
Home page
Inception date
Jul 22, 2002
LQD, given it was first to market in this space, is easily one of the most popular corporate bond ETFs. The ETF is notable for a broad portfolio of bonds from the Markit iBoxx USD Liquid Investment Grade Index, whose underlying liquidity may contribute tight tracking and subdued premiums / discounts. LQD differs from our benchmark in key ways. LQD only selects bonds that have at least three years to maturity, which gives it a longer weighted average maturity and increased interest rate risk. The fund is cheap to hold. In all, LQD offers liquid exposure to a somewhat-aggressive, yield-seeking basket of corporate bonds.
Classification
What's in the fund
Exposure type
Corporate
Stocks0.05%
Finance0.03%
Energy Minerals0.02%
Bonds, Cash & Other99.95%
Corporate91.05%
Mutual fund7.81%
Cash1.06%
Miscellaneous0.03%
Displays a symbol's price movements over previous years to identify recurring trends.