[b]No Panic Here – Quality Credit Says Relax[/b]No Panic Here – Quality Credit Says Relax
After watching leveraged loans ( AMEX:BKLN ) and junk bonds ( AMEX:HYG ) take heavy hits, we shift to the quiet giant in the credit space: AMEX:LQD .
What is AMEX:LQD ?
It’s the ETF for investment-grade corporate bonds — meaning bonds issued by hi
Key stats
About iShares iBoxx $ Investment Grade Corporate Bond ETF
Home page
Inception date
Jul 22, 2002
Structure
Open-Ended Fund
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
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
Stock breakdown by region
Top 10 holdings
Investment-Grade Debt vs. Treasuries and Stock Market ImplicatioIntroduction:
The ratio between investment-grade corporate debt (LQD) and 3-7 Year Treasuries (IEI) serves as a key measure of market liquidity, carrying important implications for the stock market. When this LQD-to-IEI ratio rises, it indicates stronger market liquidity, typically reducing the risk
Time to buy LQD Investment Grade Corporate BondsAMEX:LQD A good time to become a bond holder, as central banks lower interest rates going into next year newer bonds get issued at lower interest making your existing bonds more valuable over time all whilst receiving a decent coupon paid out as a dividend.
Introduction to Relative Strength or Ratio 1-2In part one (linked) we discussed how to construct and use relative strength ratios (RS) in trading and analysis. We also discussed common errors and best use. In part two we finish that general discussion. In part three we will analyze consumer staples verses consumers discretionary and begin to d
I'm buying the LQD Investment Grade Corporate Bond ETFUS Interest Rates have been raised to 5.25% and inflation has fallen down to 5%... an inflection point has been reached, the US seems to have inflation under control ahead of the UK and the Euro zone. I'm buying the AMEX:LQD Investment Grade Corporate Bond ETF as newer issued bonds my be issued a
short term bullish but forming head and shoulders short set upbearish head and shoulders pattern forming. the rise of the right shoulder is short term bullish. this is to test the previous resistances of Elliott Wave #3, and to test the previous support levels of (A) and (C)...I'm stalking a short entry near or slightly above those levels. Also goes with my th
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Summarizing what the indicators are suggesting.
Oscillators
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Oscillators
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Moving Averages
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Moving Averages
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Displays a symbol's price movements over previous years to identify recurring trends.
Related funds
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 trades at 106.28 USD today, its price has risen 0.08% in the past 24 hours. Track more dynamics on LQD price chart.
LQD net asset value is 106.13 today — it's risen 0.61% over the past month. NAV represents the total value of the fund's assets less liabilities and serves as a gauge of the fund's performance.
LQD assets under management is 29.77 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.
LQD price has fallen by −1.18% over the last month, and its yearly performance shows a −0.95% decrease. See more dynamics on LQD price chart.
NAV returns, another gauge of an ETF dynamics, showed a −0.80% decrease in three-month performance and has increased by 3.41% in a year.
NAV returns, another gauge of an ETF dynamics, showed a −0.80% decrease in three-month performance and has increased by 3.41% in a year.
LQD fund flows account for 383.81 M USD (1 year). Many traders use this metric to get insight into investors' sentiment and evaluate whether it's time to buy or sell the fund.
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.
In some ways, ETFs are safe investments, but in a broader sense, they're not safer than any other asset, so it's crucial to analyze a fund before investing. But if your research gives a vague answer, you can always refer to technical analysis.
Today, LQD technical analysis shows the sell rating and its 1-week rating is strong sell. Since market conditions are prone to changes, it's worth looking a bit further into the future — according to the 1-month rating LQD shows the strong sell signal. See more of LQD technicals for a more comprehensive analysis.
Today, LQD technical analysis shows the sell rating and its 1-week rating is strong sell. Since market conditions are prone to changes, it's worth looking a bit further into the future — according to the 1-month rating LQD shows the strong sell signal. See more of LQD technicals for a more comprehensive analysis.
Yes, LQD pays dividends to its holders with the dividend yield of 4.54%.
LQD trades at a premium (0.07%).
Premium/discount to NAV expresses the difference between the ETF’s price and its NAV value. A positive percentage indicates a premium, meaning the ETF trades at a higher price than the calculated NAV. Conversely, a negative percentage indicates a discount, suggesting the ETF trades at a lower price than NAV.
Premium/discount to NAV expresses the difference between the ETF’s price and its NAV value. A positive percentage indicates a premium, meaning the ETF trades at a higher price than the calculated NAV. Conversely, a negative percentage indicates a discount, suggesting the ETF trades at a lower price than NAV.
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.