12 important things you should know about BlackRock LQD ETF
Updated: October 03, 2022
Pros
3-year return above the benchmark
5-year return above the benchmark
10-year return above the benchmark
15-year return above the benchmark
Low expense ratio
Cons

None for now.

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Before we start: if you're looking for LQD “stock” price, you can quickly find it out by visiting Finny and typing "LQD quote". If you're looking for a quick scoop on LQD "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "LQD". You'll get all this info in one place.

Are you looking to buy or sell LQD? Or perhaps you're looking for LQD fact sheet, and learn about its alternatives? If so, you came to the right place.

In this LQD ETF review, we'll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you'll be able to find in this review:

  • Fact Sheet: LQD performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: LQD buy or sell; the pros and cons of investing in LQD ETF;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to LQD.

And here is the list of questions we’ll answer:

  1. Describe iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).
  2. What is LQD underlying index?
  3. What are LQD holdings?
  4. What is LQD performance? What are LQD historical returns?
  5. What is LQD dividend yield?
  6. What is LQD Finny Score? LQD buy or sell?
  7. What are the pros of investing in LQD? What are LQD buy reasons?
  8. What are the cons of investing in LQD? What are LQD sell reasons?
  9. Compare and contrast: LQD vs HYG.
  10. Compare and contrast: LQD vs VCIT.
  11. Compare and contrast: LQD vs AGG.
  12. Compare and contrast: LQD vs BND.

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).

iShares Trust - iShares iBoxx $ Investment Grade Corporate Bond ETF is an exchange traded fund launched by BlackRock, Inc. It is managed by BlackRock Fund Advisors. The fund invests in fixed income markets of global developed region. It invests in U.S. dollar-denominated, investment grade corporate bonds with at least 3 years to maturity. The fund seeks to track the performance of the Markit iBoxx USD Liquid Investment Grade Index, by using representative sampling technique. iShares Trust - iShares iBoxx $ Investment Grade Corporate Bond ETF was formed on July 22, 2002 and is domiciled in the United States.

2. What is LQD underlying index?

Markit iBoxx $ Liquid Investment Grade Index.

3. What are LQD top holdings?

LQD has 0 stock holdings and 2,398 bond holdings .

The top 10 holdings represent 3.21% of total assets. Here are the top holdings:

Name Symbol % Assets
BlackRock Cash Funds Treasury SL Agency XTSLA 1.09%
GE Capital International Funding Company Unlimited Company 4.42% N/A 0.34%
Anheuser-Busch Companies LLC / Anheuser-Busch InBev Worldwide Inc 4.9% N/A 0.30%
CVS Health Corp 5.05% N/A 0.26%
Goldman Sachs Group, Inc. 6.75% N/A 0.22%
CVS Health Corp 4.3% N/A 0.21%
T-Mobile USA, Inc. 3.88% N/A 0.21%
AT&T Inc 3.5% N/A 0.20%
AT&T Inc 3.55% N/A 0.19%
Wells Fargo & Company 5.01% N/A 0.19%

4. What is LQD performance? What are LQD historical returns?

LQD has generated the following returns:

  • 1-month return is 3.91%;
  • 3-month return is 0.92%;
  • 1-year return is -14.26%;
  • 3-year return is -0.27%;
  • 5-year return is 1.68%;
  • 10-year return is 2.70%;
  • 15-year return is 4.29%.

5. What is LQD dividend yield?

LQD yield is 4.72%.

Analysis

6. What is Finny Score? buy or sell?

Finny Score is 100. Our quantitative analysis shows 5 reasons to buy and 0 reasons to sell it, resulting in the Finny Score of 100.

7. What are the pros of investing in LQD? What are LQD buy reasons?

The following are LQD strengths from our perspective:

  • LQD 3-year return is -0.27%, which is higher than the 3-year return of the benchmark index (Bloomberg US Aggregate Bond TR USD), -1.07%.
  • LQD 5-year return is 1.68%, which is higher than the 5-year return of the benchmark index (Bloomberg US Aggregate Bond TR USD), 0.54%.
  • LQD 10-year return is 2.7%, which is higher than the 10-year return of the benchmark index (Bloomberg US Aggregate Bond TR USD), 1.41%.
  • LQD 15-year return is 4.29%, which is higher than the 15-year return of the benchmark index (Bloomberg US Aggregate Bond TR USD), 3.22%.
  • LQD expense ratio is 0.14%, which is considered low. Nice job picking a low-cost fund.

8. What are the cons of investing in LQD? What are LQD negatives?

There are no visible red flags.

Alternatives

9. Compare and contrast: LQD vs HYG.

Both LQD and HYG are ETFs.

LQD has a lower 5-year return than HYG (1.68% vs 3.12%).

LQD has a lower expense ratio than HYG (0.14% vs 0.48%).

LQD HYG
Segment Fixed Income: U.S. - Corporate Investment Grade Fixed Income: U.S. - Corporate High Yield
Net Assets $34.83B $12.28B
Expense Ratio 0.14% 0.48%
Management Style passive (index-based) passive (index-based)
Underlying Index Markit iBoxx $ Liquid Investment Grade Index Markit iBoxx $ Liquid High Yield Index
Dividend Yield 4.72% 7.71%

HYG profile: iShares Trust - iShares iBoxx $ High Yield Corporate Bond ETF is an exchange traded fund launched by BlackRock, Inc. It is managed by BlackRock Fund Advisors. The fund invests in fixed income markets of global developed region. It invests in U.S. dollar-denominated high yield corporate bonds with a maturity of at least one year and less than 15 years and a sub-investment grade rating from Fitch, Moody's or S&P. The fund seeks to track the performance of the Markit iBoxx USD Liquid High Yield Index, by using representative sampling technique. iShares Trust - iShares iBoxx $ High Yield Corporate Bond ETF was formed on April 4, 2007 and is domiciled in the United States.

For further information, check out LQD vs HYG comparison details.

10. Compare and contrast: LQD vs VCIT.

Both LQD and VCIT are ETFs.

LQD has a lower 5-year return than VCIT (1.68% vs 1.71%).

LQD has a higher expense ratio than VCIT (0.14% vs 0.04%).

LQD VCIT
Segment Fixed Income: U.S. - Corporate Investment Grade Fixed Income: U.S. - Corporate Investment Grade Intermediate
Net Assets $34.83B $41.06B
Expense Ratio 0.14% 0.04%
Management Style passive (index-based) passive (index-based)
Underlying Index Markit iBoxx $ Liquid Investment Grade Index Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index
Dividend Yield 4.72% 4.73%

VCIT profile: Vanguard Scottsdale Funds - Vanguard Intermediate-Term Corporate Bond ETF is an exchange traded fund launched and managed by The Vanguard Group, Inc. The fund invests in the fixed income markets of global region. It primarily invests in U.S. dollar-denominated investment-grade fixed income securities issued by industrial, utility, and financial companies with maturity of 5-10 years. The fund seeks to track the performance of the Bloomberg U.S. 5-10 Year Corporate Bond Index, by using representative sampling technique. Vanguard Scottsdale Funds - Vanguard Intermediate-Term Corporate Bond ETF was formed on November 19, 2009 and is domiciled in the United States.

For further information, check out LQD vs VCIT comparison details.

11. Compare and contrast: LQD vs AGG.

Both LQD and AGG are ETFs.

LQD has a higher 5-year return than AGG (1.68% vs -0.07%).

LQD has a higher expense ratio than AGG (0.14% vs 0.03%).

LQD AGG
Segment Fixed Income: U.S. - Corporate Investment Grade Fixed Income: U.S. - Broad Market Investment Grade
Net Assets $34.83B $82.23B
Expense Ratio 0.14% 0.03%
Management Style passive (index-based) passive (index-based)
Underlying Index Markit iBoxx $ Liquid Investment Grade Index Bloomberg Barclays U.S. Aggregate Bond Index
Dividend Yield 4.72% 2.02%

AGG profile: iShares Trust - iShares Core U.S. Aggregate Bond ETF is an exchange traded fund launched by BlackRock, Inc. The fund is managed by BlackRock Fund Advisors. It invests in fixed income markets of the United States. The fund invests in U.S. dollars denominated, fixed rate investment grade treasury bonds, government-related bonds, corporate bonds, mortgage-backed pass-through securities, commercial mortgage-backed securities and asset backed securities that have a remaining maturity of at least one year. It seeks to track the performance of the Bloomberg U.S. Aggregate Bond Index, by using representative sampling technique. iShares Trust - iShares Core U.S. Aggregate Bond ETF was formed on September 22, 2003 and is domiciled in the United States.

For further information, check out LQD vs AGG comparison details.

12. Compare and contrast: LQD vs BND.

Both LQD and BND are ETFs.

LQD has a higher 5-year return than BND (1.68% vs -0.04%).

LQD has a higher expense ratio than BND (0.14% vs 0.03%).

LQD BND
Segment Fixed Income: U.S. - Corporate Investment Grade Fixed Income: U.S. - Broad Market Investment Grade
Net Assets $34.83B $83.24B
Expense Ratio 0.14% 0.03%
Management Style passive (index-based) passive (index-based)
Underlying Index Markit iBoxx $ Liquid Investment Grade Index Bloomberg Barclays U.S. Aggregate Float Adjusted Index
Dividend Yield 4.72% 3.39%

BND profile: Vanguard Bond Index Funds - Vanguard Total Bond Market ETF is an exchange traded fund launched and managed by The Vanguard Group, Inc. The fund invests in the fixed income markets of the United States. It invests in investment-grade debt securities including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities with maturities of more than 1 year that are rated BBB- or above by S&P. The fund seeks to replicate the performance of the Bloomberg U.S. Aggregate Float Adjusted Index, by employing representative sampling technique. Vanguard Bond Index Funds - Vanguard Total Bond Market ETF was formed on December 11, 1986 and is domiciled in the United States.

For further information, check out LQD vs BND comparison details.

In the LQD review, we covered LQD key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.