LQD Profile
The iShares iBoxx $ Investment Grade Corporate Bond ETF aims to offer investors broad exposure to the U.S. dollar-denominated investment-grade corporate bond market. To achieve this objective, the fund invests at least 80% of its assets in the component securities of its underlying index. Additionally, it commits at least 90% of its assets to fixed income securities that mirror those included in the index, ensuring that the fund closely tracks its benchmark.
The underlying index is specifically designed to represent the performance of the U.S. investment-grade corporate bond sector, which includes a wide array of corporate bonds with high credit ratings. This index captures the performance of bonds issued by companies with strong credit profiles, providing investors with exposure to a segment of the bond market known for its relatively lower risk compared to lower-rated corporate bonds.
By focusing on investment-grade corporate bonds, the ETF aims to deliver a balance of income and stability. Investment-grade bonds are issued by financially sound companies and are considered less risky than high-yield bonds. The fund provides investors with access to a diverse portfolio of corporate debt, allowing for exposure to a broad range of industries while maintaining a focus on high credit quality.
Managed by iShares, a division of BlackRock, the ETF benefits from the firm's extensive experience in fixed-income investing and its robust infrastructure for managing and tracking indices. iShares is renowned for its comprehensive range of exchange-traded funds and its expertise in delivering effective investment solutions. The iShares iBoxx $ Investment Grade Corporate Bond ETF is well-suited for investors seeking stable income through high-quality corporate bonds and a diversified exposure to the investment-grade segment of the corporate bond market.
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