Average Daily Volume
29.81M
Fund Overview
The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is one of the largest and most liquid ETFs focusing on U.S. investment-grade corporate bonds. It tracks the Markit iBoxx USD Liquid Investment Grade Index, which includes bonds issued by high-quality corporations with maturities of at least three years. LQD provides exposure to a diversified portfolio of corporate debt, offering investors a way to access steady income with relatively lower credit risk compared to high-yield bonds. The fund is widely used by institutional and retail investors alike for its liquidity and consistent performance in the fixed-income space.
- Asset Class
-
Bond
- Industry
-
Corporate Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 5.19 %
- Currency Hedged
-
No
- Portfolio Turnover
-
17 %
- Dividend Date
-
Why Invest in the LQD ETF?
Potential Benefits
- Provides exposure to a diversified portfolio of U.S. investment-grade corporate bonds, reducing single-issuer risk.
- Offers relatively stable income through regular coupon payments, making it attractive for income-focused investors.
- High liquidity due to its large asset base and tight bid-ask spreads, facilitating easy entry and exit.
- Lower credit risk compared to high-yield bonds, as it focuses on issuers with strong credit ratings.
- Can serve as a defensive allocation in a broader fixed-income portfolio.
Potential Risks
- Interest rate risk: Rising rates can lead to declining bond prices, negatively impacting the fund's NAV.
- Credit risk: Although investment-grade, some issuers may face downgrades or defaults, affecting returns.
- Duration risk: The fund's average maturity exposes it to price volatility if interest rates rise sharply.
- Liquidity risk in extreme market conditions, though less pronounced than with high-yield bonds.
- Lower yield potential compared to high-yield or emerging market bonds.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.3%
|
+1.4%
|
-2.1%
|
+0.3%
|
+0.9%
|
+0.1%
|
-2.2%
|
+0.4%
|
-3.4%
|
+0.4%
|
-
|
-
|
| 2025 |
+0.6%
|
+2.4%
|
-0.5%
|
-0.3%
|
+0.2%
|
+2.1%
|
-0.1%
|
+1.0%
|
+1.9%
|
+0.1%
|
+0.9%
|
-0.7%
|
| 2024 |
-0.4%
|
-1.9%
|
+1.5%
|
-3.2%
|
+2.2%
|
+0.6%
|
+2.6%
|
+1.9%
|
+2.0%
|
-3.2%
|
+1.8%
|
-2.7%
|
| 2023 |
+5.2%
|
-4.2%
|
+3.9%
|
+0.6%
|
-1.8%
|
+0.8%
|
+0.1%
|
-1.2%
|
-3.6%
|
-2.4%
|
+7.6%
|
+4.9%
|
| 2022 |
-3.6%
|
-2.1%
|
-2.9%
|
-6.7%
|
+1.9%
|
-3.6%
|
+4.4%
|
-4.4%
|
-6.0%
|
-0.8%
|
+6.6%
|
-1.6%
|
| 2021 |
-1.8%
|
-2.3%
|
-1.5%
|
+1.0%
|
+0.6%
|
+2.2%
|
+1.4%
|
-0.3%
|
-1.5%
|
+0.5%
|
-0.1%
|
0.0%
|
| 2020 |
+2.4%
|
+1.1%
|
-6.3%
|
+4.8%
|
+2.5%
|
+2.1%
|
+3.1%
|
-1.8%
|
-0.4%
|
-0.5%
|
+3.8%
|
+0.2%
|
| 2019 |
+3.4%
|
-0.2%
|
+2.9%
|
+0.4%
|
+1.7%
|
+3.2%
|
+0.3%
|
+3.9%
|
-0.8%
|
+0.4%
|
+0.5%
|
+0.5%
|
| 2018 |
-1.2%
|
-2.2%
|
+0.6%
|
-1.6%
|
+0.5%
|
-0.5%
|
+1.3%
|
0.0%
|
-0.1%
|
-2.0%
|
-0.4%
|
+1.9%
|
| 2017 |
+0.1%
|
+1.3%
|
-0.3%
|
+1.2%
|
+1.3%
|
+0.5%
|
+0.8%
|
+0.7%
|
0.0%
|
+0.2%
|
-0.1%
|
+1.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: LQD vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
LQD tracks the Markit iBoxx USD Liquid Investment Grade Index, which includes U.S. dollar-denominated investment-grade corporate bonds with maturities of at least three years. The index is market-cap weighted, meaning larger issuers have a greater impact on performance. The fund primarily holds bonds from a wide range of sectors, including financials, industrials, and utilities. It is passively managed, with periodic rebalancing to align with the index composition. The fund's holdings are selected based on liquidity and credit quality, ensuring a diversified and tradable portfolio.
Frequently Asked Questions
What is the average credit rating of LQD's holdings?
LQD primarily holds bonds rated BBB or higher, with a significant portion in the A and AA categories, reflecting its investment-grade focus.
How often does LQD pay dividends?
LQD pays dividends monthly, providing regular income to investors.
Can LQD be used as a substitute for Treasury bonds?
While LQD offers higher yield than Treasuries, it also carries higher credit and liquidity risk. It can complement but not fully replace Treasury exposure in a portfolio.
What sectors are most represented in LQD?
Financials, industrials, and utilities are the largest sectors in LQD, reflecting the composition of the investment-grade corporate bond market.
Industry Overview
The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is part of the broad corporate bond market, which plays a crucial role in fixed-income portfolios. Investment-grade corporate bonds are issued by financially stable companies and are considered lower-risk compared to high-yield bonds. LQD provides investors with exposure to this segment, offering a balance between yield and credit quality. The fund is particularly relevant for those seeking income with moderate risk, especially in environments where interest rates are stable or declining. The corporate bond market is influenced by macroeconomic factors such as interest rate trends, corporate earnings, and overall credit conditions.
Alternative Comparison
Compared to VCIT (Vanguard Intermediate-Term Corporate Bond ETF), LQD has a slightly longer duration and broader maturity range, potentially offering higher yield but greater interest rate sensitivity. Unlike HYG (iShares iBoxx $ High Yield Corporate Bond ETF), LQD focuses exclusively on investment-grade bonds, providing lower yield but significantly reduced credit risk. LQD's expense ratio is competitive within its category, though some peers like CIU (iShares Intermediate Credit Bond ETF) may offer slightly lower costs for similar exposure.
Issuer Overview
LQD is issued by iShares, a leading ETF provider under BlackRock, the world's largest asset manager. iShares is known for its extensive lineup of low-cost, liquid ETFs across various asset classes. BlackRock's scale and expertise in fixed-income markets contribute to LQD's robust structure and efficient management.
Conclusion
LQD is a core holding for investors seeking diversified exposure to U.S. investment-grade corporate bonds. Its liquidity, credit quality, and income potential make it a staple in many fixed-income portfolios. While it carries interest rate and credit risks, its focus on high-quality issuers provides a balance between yield and safety. Investors should consider their risk tolerance and interest rate outlook when including LQD in their portfolios.
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