iShares Launches Three New Corporate Bond Funds (LQD)

The world’s largest ETF issuer, iShares, is launching a suite of three new investment grade corporate bond funds to round out its current offerings in the highly popular space.

According to a recent SEC filing, the three new funds are:

  • iShares 5-10 Year Investment Grade Corporate Bond ETF (MLQD) (0.06% expense ratio),
  • iShares 10+ Year Investment Grade Corporate Bond ETF (LLQD) (0.06% expense ratio), and
  • iShares iBonds Dec 2027 Term Corporate ETF (IBDS) (0.20% expense ratio).

ETF.com has more details on iShares’ decision to roll out additional funds in the space:

“We are taking a suite approach. The idea here is the recognition on our part that our investors are increasingly demanding more precision and flexibility,” said Stephen Laipply, head of iShares’ fixed-income strategy in the U.S.

“By building out the LQD suite to include intermediate and long in addition to [SLQD] and broad LQD, we basically have completed that suite for our investors. Now they can move across the maturity curve and better manage risk,” he added.

Corporate bonds have proven very popular with investors in recent years, amid persistently low Treasury rates, so it makes sense why iShares wanted to offer some more options here.

The issuer’s largest current investment grade corporate offering, iShares IBoxx $ Invest Grade Corporate Bond Fund (NYSE:LQD) was trading at $120.87 per share on Friday morning, down $0.05 (-0.04%). Year-to-date, LQD has gained 5.10%, versus a 12.31% rise in the benchmark S&P 500 index during the same period.

LQD currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 64 ETFs in the Corporate Bond ETFs category.