This ETF is the most popular option for investors looking to gain exposure to investment grade corporate bonds, making it a useful tool for those looking to access a corner of the bond market that should be a core component of any long-term, buy-and-hold portfolio. LQD is probably of limited use for short term traders, who will prefer to utilize more extreme ends of the risk spectrum to capitalize off of short term movements in asset prices and risk tolerance. This ETF should, however, be very useful to those building a long-term portfolio; exposure to corporate bonds can deliver attractive yields without excessive risks. LQD can specifically be helpful for those with holdings in AGG or BND, beefing up the relatively minor allocations those aggregate products make to corporate debt (those ETFs are dominated by government bonds). While LQD is spread out across the maturity spectrum, investors do have options for more granular exposure to long term (VCLT) or short term (SCPB, VCSH) corporate debt.
LQD is extremely cost efficient, and offers an impressively deep underlying portfolio of fixed income securities. But there are some interesting alternatives out there that may make more sense for certain investors. CBND, for example, offers similar exposure but uses a unique weighting methodology that may be more appealing. Whereas LQD gives the largest weightings to the biggest issues of debt, CBND uses fundamental factors such as return on assets and interest coverage ratio to determine the weightings assigned.
| Segment | Fixed Income: U.S. - Corporate, Broad-based Investment Grade |
| Category | Corporate, Broad-based |
| Focus | Investment Grade |
| Niche | Broad Maturities |
| Strategy | Vanilla |
| Weighting Scheme | Market Value |
This section compares how balanced and deep this ETF is relative to its peers.
| LQD | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Number of Holdings | 3000 | 990 | 1291 |
| % of Assets in Top 10 | 2.83% | 20.51% | 22.40% |
| % of Assets in Top 15 | 3.98% | 24.56% | 25.56% |
| % of Assets in Top 50 | 10.36% | 43.09% | 41.89% |
| LQD | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Large (>12.9B) | N/A | 0.65% | N/A |
| Mid (>2.7B) | N/A | 0.27% | N/A |
| Small (>600M) | N/A | 0.06% | N/A |
| Micro (<600M) | N/A | 0.00% | N/A |
This section compares the P/E ratio of this ETF to its peers.
This section compares the dividend yield of this ETF to its peers.
| LQD | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Dividend | $ 0.38 | $ 0.16 | $ 0.18 |
| Dividend Date | 2023-09-01 | N/A | N/A |
| Annual Dividend Rate | $ 4.19 | $ 1.59 | $ 2.04 |
| Annual Dividend Yield | 4.10% | 4.04% | 4.12% |
View charts featuring LQD price and volume data.
View charts featuring ETF fund flow data.
5 Day Net Flows: -1.74 B 1 Month Net Flows: -3.13 B 3 Month Net Flows: -6.23 B 6 Month Net Flows: -3.97 B 1 Year Net Flows: -2.6 B 3 Year Net Flows: -16.88 B 5 Year Net Flows: -2.9 B 10 Year Net Flows: 14.31 BView charts that break down the influence that fund flows and price had on overall assets.
5 Day Net AUM Change: -2.23 BThe adjacent table shows a Realtime Rating for several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETF Database Pro members, highlights the best rated ETF in the Corporate Bonds category for each metric. To view information on how the ETF Database Realtime Ratings work, click here.
This section compares the cost efficiency of this ETF to its peers.
| Max ST Capital Gains Rate | 39.60% |
| Max LT Capital Gains Rate | 20.00% |
| Tax On Distributions | Ordinary income |
| Distributes K1 | No |
This section shows how this ETF has performed relative to its peers. Returns over 1 year are annualized.
| LQD |
ETF Database
Category Average |
Factset Segment
Average |
|
|---|---|---|---|
| 1 Month Return | -4.13% | -2.01% | -2.74% |
| 3 Month Return | -5.94% | -2.02% | -3.53% |
| YTD Return | -1.93% | 1.02% | -0.33% |
| 1 Year Return | 2.20% | 4.03% | 3.09% |
| 3 Year Return | -6.60% | -2.00% | -2.70% |
| 5 Year Return | 0.49% | 0.77% | 0.42% |
The following charts reflect the geographic spread of LQD's underlying holdings.
The following charts reflect the allocation of LQD's underlying holdings.
| Asset | Percentage |
|---|---|
| Corporate | 99.24% |
| CASH | 0.41% |
| Preferred | 0.07% |
| Other | 0.03% |
| Bond Sector | Percentage |
|---|
| Maturity | Percentage |
|---|---|
| Less Than 1 Year | 0.0% |
| 1-3 Years | 0.0% |
| 3-5 Years | 0.0% |
| 5-7 Years | 0.0% |
| 7-10 Years | 0.0% |
| 10-15 Years | 0.0% |
| 15-20 Years | 0.0% |
| 20-30 Years | 0.0% |
| 30+ Years | 0.0% |
| Asset | Percentage |
|---|---|
| Corporate | 99.24% |
| CASH | 0.41% |
| Preferred | 0.07% |
| Other | 0.03% |
This section shows how the volatility of this ETF compares to the peer group ETF Database Category.
| 5 Day Volatility | 65.68% |
| 20 Day Volatility | 7.51% |
| 50 Day Volatility | 8.85% |
| 200 Day Volatility | 8.48% |
| Beta | 0.33 |
| Standard Deviation | 2.97% |
ETF Database's Financial Advisor Reports are designed as an easy handout for clients to explain the key information on a fund. Includes new analyst insights and classification data.
Fact sheets are issued by the ETF provider and framed by ETF Database. Information contained within the fact sheet is not guaranteed to be timely or accurate.
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