iShares iBoxx $ Investment Grade Corporate Bond ETF
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iShares iBoxx $ Investment Grade Corporate Bond ETF offers diversified exposure to US investment grade corporate bonds with $31.5B in assets. LQD yields approximately 4.9% net after expenses, with a 30-day SEC yield of 4.94% and an effective duration of 8 years. The fund is a solid choice for those trying to stay away from the equity bubble, but you can definitely find better individual bond choices.
Baird Financial Group Inc. cut its holdings in iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEARCA:LQD) by 43.4% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 101,722 shares of the exchange traded fund's stock after selling
Anfield Capital Management LLC trimmed its holdings in shares of iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEARCA:LQD) by 0.9% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 78,724 shares of the exchange traded fund's stock after selling
Alteri Wealth LLC raised its position in iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEARCA:LQD) by 16.6% during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 10,361 shares of the exchange traded fund's stock after purchasing an additional 1,475 shares
REITs are poised for a strong comeback. Recent headwinds are now turning into tailwinds. Even then, high-quality REITs remain heavily discounted.
The Vanguard Long-Term Corporate Bond ETF and iShares iBoxx Investment Grade Corporate Bond ETF both offer exposure to investment-grade corporate bonds. VCLT offers lower costs and a higher yield, making it more appealing to income-focused investors.
SPLB and LQD both offer exposure to U.S. investment-grade corporate bonds. SPLB stands out for its lower fees and higher yield.
The market's obsessed with AI giants, leaving income investors behind. I'm focusing on what this imbalance means for long-term opportunity. Massive AI spending acts like new-age stimulus, creating ripples across power, infrastructure, and industrial sectors that fuel growth. I believe the Fed will keep "running it hot," driving new cycles in housing, manufacturing, and income assets as rates eventually fall.
The iShares iBoxx $ Investment Grade Corporate Bond ETF is not the lowest expense ratio option to target this particular duration. In addition to that, we are not terribly keen on long to very-long duration bonds. One of the issues we have, in addition to particularly low compensation for credit risk at the moment, is the low yield spread.
We think higher credit spreads are probable to occur and that the iShares iBoxx $ Investment could face residual backlash after higher yield bonds, especially given the vehicle's sector concentration. Unsecured bond exposure heightens risk due to higher loss given default. Moreover, lower rates are anticipated, which could trigger call risk and/or reinvestment risk. An effective duration of 7.99 can lead to upside if interest rates settle lower. That said, dislocations usually occur, where duration turns negative in stressed economic environments.
Rising tariff turmoil has sparked a run from credit-sensitive instruments, with escalating trade tensions threatening economic stability. Wednesday's GDP print stoked recessionary fears when it showed the U.S. economy contracted for the first time since early 2022.
The volatile market environment due to the trade war can create opportunities for long-term investors, especially in closed-end funds (CEFs). First Trust High Yield Opportunities 2027 Term Fund (FTHY) and Blackstone Strategic Credit 2027 Term Fund (BGB) offer high-yield exposure with potential benefits from floating-rate investments. Both FTHY and BGB have seen distribution cuts due to interest rate changes, but their discounts have widened, presenting potential buying opportunities.
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.
The LQD ETF isn't offering enough extra yield compared to safer US government bonds to be worth the risk. Credit spreads remain too tight, in my opinion. This presents a risk for the current holders of corporate bonds in case of an economic slowdown in the US. I maintain my "Sell" rating on the LQD ETF.
In investing, there's no need to invest in individual stocks to achieve strong returns over time. Don't get me wrong.
During the first week of March, fixed income ETFs gathered more money than equity products. While not rare, this is a sign of uncertainty in the markets.
JPMorgan strategists suggest that if US equity ETFs continue attracting inflows, the current market correction may soon be behind us, per Bloomberg, as quoted on Yahoo Finance.
REITs have surged in value. But opportunities still remain for income-oriented investors. I present two REITs to buy today.