iShares Interest Rate Hedged Corporate Bond ETF

LQDH

Market cap $507M

Overview Fund Activity

93.09 USD

+0.02

0.02%

At close Updated Sep 12, 4:00 PM EDT

1 day

0.02%

5 days

0.38%

1 month

0.2%

3 months

0.76%

6 months

1.03%

Year to date

0.38%

1 year

1.21%

5 years

1.74%

10 years

0.3%

0

Funds holding %

of 7,462 funds

–

Analysts bullish %

Fund manager confidence

Based on 2025 Q2 regulatory disclosures by fund managers ($100M+ AUM)

100% more repeat investments, than reductions

Existing positions increased: 50 | Existing positions reduced: 25

36% more first-time investments, than exits

New positions opened: 19 | Existing positions closed: 14

5% more funds holding

Funds holding: 96 [Q1] → 101 (+5) [Q2]

2.06% more ownership

Funds ownership: 70.74% [Q1] → 72.81% (+2.06%) [Q2]

7% less capital invested

Capital invested by funds: $382M [Q1] → $357M (-$25.2M) [Q2]

50% less funds holding in top 10

Funds holding in top 10: 4 [Q1] → 2 (-2) [Q2]

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Financial journalist opinion

These bond funds shield you from interest-rate shocks — but here's the catch

Insurance against Fed rate hikes with “rate-hedged” ETFs doesn't come cheap.

These bond funds shield you from interest-rate shocks — but here's the catch

What's Going On With Treasury Rates?

We think the Fed has time to assess the impact of tariffs, and we expect it to wait to cut rates until the data show that tariffs are impacting the real economy. So far, there are no signs of recession in the hard data. The tariff pause offers the possibility to avoid worst-case economic scenarios before the damage is crystalized. We believe technical factors will continue to drive market dislocations in spreads and sectors, and that active managers can navigate this more effectively.

What's Going On With Treasury Rates?

These ETFs can be your insurance against Fed hikes and rising rates

“Rate-hedged” bond funds can make money when interest rates rise and bond prices fall.

These ETFs can be your insurance against Fed hikes and rising rates

LQDH: Checking In On Hedged Investment Grade Bonds (Rating Upgrade)

We initially rated LQDH a 'Sell' due to its zero duration profile, making it less beneficial in a falling rate environment. LQD outperformed LQDH by 4% as expected as the Fed announced its intent to cut Fed Funds. LQD benefited from lower intermediate rates, confirming our initial thesis. With the yield curve shift largely behind us, we are upgrading LQDH to 'Hold', anticipating similar performance to LQD in a range-bound rate environment.

LQDH: Checking In On Hedged Investment Grade Bonds (Rating Upgrade)

LQDH: Investment-Grade Bond ETF, Interest Rate Hedged, Good 6.6% Yield

LQDH is an interest rate hedged investment-grade corporate bond index ETF managed by BlackRock. It provides investors with diversified exposure to investment-grade corporate bonds, and uses swaps to hedge its interest rate risk. It has significantly outperformed its peers since inception, and with lower risk and volatility.

How to immunize your bond ETF if interest rates turn back up

The best time to buy insurance is when whatever it is you're insuring against is considered unlikely. So, should you hedge your bond portfolio against rising interest rates?

LQDH: A Corporate Spreads Play (Rating Downgrade)

iShares Interest Rate Hedged Corporate Bond ETF is a fixed income ETF that hedges against rising interest rates. LQDH isolates corporate credit spreads and gains when spreads tighten, but loses value when spreads widen. Investment grade corporate spreads are currently at historic lows, indicating a potential future widening and lower NAV for LQDH.

The Credit Opportunity In M&A

M&A was almost dormant in 2023. In the US, as a proportion of the market value of the benchmark equity indices, it fell to its lowest level in 20 years, according to McKinsey. Credit investors are not traditionally supposed to be fans of M&A, and it's true we are wary of leveraging M&A, where debt is loaded onto balance sheets to buy competitors. We are seeing a comeback for M&A that we think is likely to continue through 2024.

LQDH: A Hedge For The Fed Not Pivoting

Bond funds that hedge interest rate risk have performed better than those that don't in recent years. The iShares Interest Rate Hedged Corporate Bond ETF is a cost-effective option for investors seeking interest rate hedged exposure to investment-grade corporate bonds. The LQDH ETF offers a unique blend of features, including investment-grade corporate bond exposure with interest rate hedging, setting it apart from similar ETFs.

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