iShares iBoxx $ Investment Grade Corporate Bond ETF
LQD BondUpdated: Jul 4, 2026, 21:17 UTC
Key Metrics
Top 10 Holdings
| Holding | Ticker | Weight | Bar |
|---|---|---|---|
| BlackRock Cash Funds Treasury SL Agency | XTSLA | 0.93% |
About This ETF
The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is a Bond ETF with an expense ratio (TER) of 0.14% and $29.8B in assets under management., with its largest holdings being BlackRock Cash Funds Treasury SL Agency. The ETF currently yields 4.52% in dividends. Year-to-date, LQD has returned +0.48%.
The fund will invest at least 80% of its assets in the component securities of the underlying index, and it will invest at least 90% of its assets in fixed income securities of the types included in the underlying index that the advisor believes will help the fund track the underlying index. The underlying index is designed to provide a broad representation of the U.S. dollar-denominated liquid investment-grade corporate bond market.
FAQ — LQD
What is the TER of LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF)?
LQD has a Total Expense Ratio (TER) of 0.14 % per year. That sits below the bond category median (0.15 % across 8 peer ETFs). The TER is deducted directly from the fund and lowers your effective return.
What return has LQD delivered?
Performance for LQD: YTD: +0.48 % · 3-year p.a.: +4.91 % · 5-year p.a.: -0.35 %. Over 5 years, LQD underperforms the bond category median of +0.21 % by -0.56 pp. Past performance is no guarantee of future returns.
What are the top holdings of LQD?
The five largest positions in LQD are: XTSLA. The full holdings list is updated daily on this page.
Does LQD pay dividends?
LQD has a current dividend yield of 4.52 %. Distributing ETFs pay this out in cash; accumulating versions reinvest it inside the fund. Check the share class on your broker before buying.
Where can I buy or set up a savings plan for LQD?
LQD is available at most major brokers. For a free monthly savings plan from €1, look at Trade Republic, Scalable Capital or Flatex. The broker comparison on this site shows fees, free-savings-plan ETFs and execution exchanges side by side.
What is the iShares iBoxx $ Investment Grade Corporate Bond ETF?
The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) tracks a broad market of U.S. dollar-denominated investment-grade corporate bonds. With roughly $30.9B in assets and a 0.14% expense ratio, it ranks among the most heavily traded bond ETFs worldwide. For investors it delivers regular interest income from the debt of financially sound companies and serves as a diversification building block beyond equities.
Performance in a bond context
For a bond ETF, ongoing income matters more than price appreciation. LQD shows a distribution yield of 4.55%, while its price of $109.26 currently sits at 41.2% of the 52-week range ($106.69–$112.93). The three-year return is 5.31% per year, but the five-year figure is just 0.05% per year — the latter reflects the rate-hiking cycle, when rising policy rates pushed down the prices of longer-dated bonds.
- Distribution yield: 4.55%
- 3 years: 5.31% p.a.
- 5 years: 0.05% p.a.
The main drivers are the overall level of interest rates, duration, and issuers' credit spreads.
Risk profile
The dominant risk is interest-rate sensitivity: LQD holds medium- to long-dated corporate bonds whose prices fall when rates rise. Credit risk follows — despite investment-grade ratings, credit spreads can widen during periods of market stress. A key consideration for euro-area investors is currency risk: the fund is denominated in U.S. dollars, so swings in the EUR/USD exchange rate can materially affect returns without offering compensating yield.
- Interest-rate risk (duration)
- Issuer credit risk
- U.S. dollar versus euro exchange-rate risk
- Liquidity risk during market turbulence
Who is LQD suited for?
LQD fits investors with a medium- to long-term horizon who seek predictable interest income and an allocation alongside equities to dampen overall portfolio swings. Those who value a steady distribution and can tolerate price moves driven by interest rates will find a liquid building block here.
It is less suitable for very short-term investors who avoid any volatility, and for euro-area investors with no tolerance for USD exchange-rate risk. Anyone chasing maximum growth is also in the wrong place — bonds offer stability and income, not large capital gains.
How it compares with other bond ETFs
LQD focuses on U.S. investment-grade corporate bonds, making it more concentrated than broadly diversified aggregate funds.
- iShares Core U.S. Aggregate Bond (AGG) and Vanguard Total Bond Market (BND) blend government, mortgage and corporate bonds — lower credit risk, but usually a lower running yield.
- Vanguard Total International Bond (BNDX) covers bonds outside the U.S., often currency-hedged, and complements LQD geographically.
Investors wanting shorter duration and less rate sensitivity can consider short-term corporate bond ETFs; in return, LQD offers a higher running yield.
Where can I buy LQD?
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