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 iBoxx $ Investment Grade Corporate Bond ETF
Home page
Inception date
Jul 22, 2002
Structure
Open-Ended Fund
Replication method
Physical
Dividend treatment
Distributes
Distribution tax treatment
Ordinary income
Income tax type
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Primary advisor
BlackRock Fund Advisors
Distributor
BlackRock Investments LLC
ISIN
US4642872422
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.
Related funds
Classification
What's in the fund
Exposure type
Corporate
Stock breakdown by region
Top 10 holdings
Displays a symbol's price movements over previous years to identify recurring trends.
Frequently Asked Questions
An exchange-traded fund (ETF) is a collection of assets (stocks, bonds, commodities, etc.) that track an underlying index and can be bought on an exchange like individual stocks.
LQD assets under management is 31.83 B USD. AUM is an important metric as it reflects the fund's size and can serve as a gauge of how successful the fund is in attracting investors, which, in its turn, can influence decision-making.
Since ETFs work like an individual stock, they can be bought and sold on exchanges (e.g. NASDAQ, NYSE, EURONEXT). As it happens with stocks, you need to select a brokerage to access trading. Explore our list of available brokers to find the one to help execute your strategies. Don't forget to do your research before getting to trading. Explore ETFs metrics in our ETF screener to find a reliable opportunity.
LQD invests in bonds. See more details in our Analysis section.
LQD expense ratio is 0.14%. It's an important metric for helping traders understand the fund's operating costs relative to assets and how expensive it would be to hold the fund.
No, LQD isn't leveraged, meaning it doesn't use borrowings or financial derivatives to magnify the performance of the underlying assets or index it follows.
Yes, LQD pays dividends to its holders with the dividend yield of 4.35%.
LQD shares are issued by BlackRock, Inc.
LQD follows the iBoxx USD Liquid Investment Grade Index. ETFs usually track some benchmark seeking to replicate its performance and guide asset selection and objectives.
The fund started trading on Jul 22, 2002.
The fund's management style is passive, meaning it's aiming to replicate the performance of the underlying index by holding assets in the same proportions as the index. The goal is to match the index's returns.