IShares iBoxx $ Investment Grade Corporate Bond ETF LQD is a decent pick for investment-grade corporate bond market exposure. However, its exclusion of bonds with less than three years until maturity increases its sensitivity to changing interest rates and prevents it from accurately representing the entirety of the investment opportunity set available to U.S. corporate bond Morningstar Category peers. It also charges a higher fee than several of its closest indexed peers. These considerations support a Morningstar Analyst Rating of Neutral.
iShares iBoxx $ Invmt Grade Corp Bd ETF LQD
Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will LQD outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable LQD’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the LQD management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of LQD’s parent organization’s priorities and whether they’re in line with investors’ interests.
A solid fund, but there are better options for investment-grade corporate bond exposure.
