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iShares Interest Rate Hedged Corporate Bond ETF

LQDH

Market cap $555M

92.47 USD

+0.09

0.1%

At close Updated Sep 11, 4:00 PM EDT

1 day

0.1%

5 days

-0.11%

1 month

0.24%

3 months

-0.82%

6 months

0.75%

Year to date

-0.93%

1 year

-0.64%

5 years

-3.92%

10 years

0.39%

News

Positive

Neutral

Negative

Sentiment 3-Months

Positive 66.7%

Neutral 0%

Negative 33.3%

Zacks Investment Research

A Few Factors to Check Before Buying Bond ETFs

Bond yields remain elevated, but rising rates create risks. Here are a few factors to consider before buying bond ETFs.

A Few Factors to Check Before Buying Bond ETFs

LQDH: High-Quality, Rate-Hedged Bond Portfolio, Solid Yield And Track Record

iShares Interest Rate Hedged Corporate Bond ETF 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.

LQDH: High-Quality, Rate-Hedged Bond Portfolio, Solid Yield And Track Record

LQDH: It May Be Time To Hedge Interest Rate Risk (Rating Upgrade)

I upgrade iShares Interest Rate Hedged Corporate Bond ETF to Buy, citing renewed upward pressure on rates and effective hedging. LQDH offers a proven interest rate hedge, outperforming LQD in rising rate environments with lower volatility. Switching to LQDH from LQD is recommended until year-end, despite lower 30-day SEC yield (4.74% vs. 5.25%).

LQDH: It May Be Time To Hedge Interest Rate Risk (Rating Upgrade)

LQDH: Rate-Hedged Investment-Grade Corporate Bond ETF, Solid Yield And Performance Track-Record

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.

LQDH: Rate-Hedged Investment-Grade Corporate Bond ETF, Solid Yield And Performance Track-Record

Hyper Scale: AI's Massive Financing Needs In Focus

AI development requires large projects to establish computing power. That in turn requires massive amounts of financing.

Hyper Scale: AI's Massive Financing Needs In Focus

LQDH: This Hedging Strategy Is Effective But Likely Useless Now

iShares Interest Rate Hedged Corporate Bond ETF combines LQD exposure with swaps, resulting in near-zero duration. The hedging strategy has worked very well in 2022 when rates surged the most. Despite its effectiveness, LQDH now appears less compelling as rate pressures ease, especially given LQD's lower expense ratio.

LQDH: This Hedging Strategy Is Effective But Likely Useless Now

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)

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