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: 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: 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.
