What Is LQD? iShares iBoxx $ Investment Grade Corporate Bond ETF
Last updated July 2026
Short answer
LQD is the iShares iBoxx $ Investment Grade Corporate Bond ETF, a fund that tracks a broad basket of US investment-grade corporate bonds at a 0.14% expense ratio. It holds thousands of bonds issued by financially stable companies, so it is a diversified income and fixed-income vehicle rather than an equity fund. Its return comes mostly from bond interest, and its price is sensitive to interest-rate changes: it falls when rates rise and rises when rates fall. It is used for income and to diversify away from stocks.
LQD is issued by iShares and tracks Markit iBoxx USD Liquid Investment Grade Index. It charges a 0.14% expense ratio, holds approximately $33.11B in assets under management, yields about 4.55%, and launched in July 2002.
What is LQD?
LQD is the iShares iBoxx $ Investment Grade Corporate Bond ETF, a fund that tracks a broad basket of US investment-grade corporate bonds at a 0.14% expense ratio. It holds thousands of bonds issued by financially stable companies, so it is a diversified income and fixed-income vehicle rather than an equity fund. Its return comes mostly from bond interest, and its price is sensitive to interest-rate changes: it falls when rates rise and rises when rates fall. It is used for income and to diversify away from stocks.
LQD is issued by iShares and tracks Markit iBoxx USD Liquid Investment Grade Index, so a single ticker gives you the whole basket of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
LQD holdings: what's actually inside
LQD is weighted toward its largest constituents. As of July 2026, the top holdings are:
| Rank | Ticker | Company | % of LQD | |
|---|---|---|---|---|
| 1 | XTSLA | BlackRock Cash Funds Treasury SL Agency | 0.91% |
The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.
The bottom line on LQD
LQD is the standard one-ticker way to own a broad basket of investment-grade US corporate bonds. It delivers steady interest income at a low fee, but its price moves inversely with interest rates, so it carries duration risk. It fits as a fixed-income sleeve for income and diversification, not as a growth holding.
More on LQD
Whether LQD is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is LQD a buy?
LQD yields 4.55% as of July 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see LQD dividend: yield and schedule.
Build a portfolio around LQD with Walnut
Use LQD as your core holding, then let Walnut's AI propose thematic satellites: AI infrastructure, dividend growth, clean energy, whatever you believe in. Connect your broker, build the basket in conversation, track it as one unit.
FAQ
What is LQD?
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LQD is the iShares iBoxx $ Investment Grade Corporate Bond ETF, launched in July 2002 by iShares (BlackRock). It holds a large, diversified basket of US-dollar investment-grade corporate bonds, tracking the Markit iBoxx USD Liquid Investment Grade Index. It is one of the most widely held corporate-bond ETFs, used for income and to diversify a portfolio away from stocks.
What is LQD's ticker symbol?
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LQD, listed on NYSE Arca. The full name is iShares iBoxx $ Investment Grade Corporate Bond ETF, issued by BlackRock's iShares unit. It is one of the largest and most liquid corporate-bond ETFs available.
What does LQD hold?
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LQD holds thousands of investment-grade corporate bonds issued by financially stable US and international companies that borrow in US dollars. Because it is so diversified, no single bond makes up a large share of the fund; the largest line item is typically a small cash or collateral position. This broad spread reduces the impact of any one issuer running into trouble.
What is investment-grade?
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Investment-grade means a bond is rated BBB-/Baa3 or higher by the major credit-rating agencies, indicating a relatively low risk of default. LQD holds only investment-grade corporate bonds, which makes it lower-risk than a high-yield (junk) bond fund but also lower-yielding. The tradeoff is more safety in exchange for less income than riskier bond funds offer.
What is LQD's expense ratio?
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0.14% per year (14 basis points). On a $10,000 investment that is about $14 per year in fees. It is a low fee for an actively assembled, broadly diversified corporate-bond portfolio, though higher than the cheapest broad-market equity index funds.
What is LQD's dividend yield?
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Approximately 4.55% as of July 2026, paid monthly. The yield reflects the interest earned on the underlying corporate bonds and moves with prevailing interest rates: when new bonds are issued at higher rates, the fund's yield tends to rise over time as it holds and replaces bonds.
Why does LQD's price go down when interest rates go up?
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Bond prices move inversely to interest rates. When rates rise, newly issued bonds pay more, making existing lower-coupon bonds less attractive, so their prices fall, and LQD's share price falls with them. This sensitivity is called duration risk. LQD holds intermediate- to longer-dated bonds, so it has meaningful duration and can drop noticeably when rates rise sharply, even though it pays steady income.
How do I buy LQD?
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LQD trades like a stock on NYSE Arca during US market hours through any broker, including Robinhood, Fidelity, Schwab, Public, and Webull. Fractional shares are supported at most modern brokers. If you want a bond sleeve to balance out your stock baskets, connect your broker to Walnut and the AI can help you see how fixed income fits alongside your equity exposure.
What is LQD's AUM?
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Approximately $33.11 billion as of July 2026, making it one of the largest corporate-bond ETFs in the world. Its size supports deep liquidity, which is useful in fixed income where individual bonds can otherwise be harder to trade.
Is LQD a good investment?
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LQD provides diversified, investment-grade corporate-bond exposure for income and to cushion a portfolio against stock volatility. Its main risks are interest-rate (duration) risk and, to a lesser degree, credit risk if the economy weakens. It is typically used as a fixed-income allocation rather than a growth holding. Walnut is not an investment adviser; whether LQD fits depends on your income needs, risk tolerance, and view on interest rates.
When was LQD created?
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July 22, 2002. It was one of the first corporate-bond ETFs and helped establish the category, which has since grown into a major part of the fixed-income ETF market.
Does LQD pay monthly dividends?
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Yes. LQD pays interest income to shareholders monthly, with a trailing yield of roughly 4.55% as of July 2026. Monthly distributions are common for bond ETFs and can make them convenient for investors seeking regular income. Most brokers offer reinvestment of those distributions.
How is LQD different from a Treasury bond fund like SHY?
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LQD holds investment-grade corporate bonds, which pay more than Treasuries to compensate for credit risk. SHY (iShares 1-3 Year Treasury Bond ETF) holds short-term US government bonds, which carry essentially no credit risk and far less interest-rate sensitivity. LQD generally offers higher yield but more price volatility and some credit risk; SHY offers lower yield with much greater stability.
How is LQD different from a high-yield bond fund like HYG?
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LQD holds only investment-grade bonds (BBB-/Baa3 and above), while HYG (iShares iBoxx $ High Yield Corporate Bond ETF) holds below-investment-grade, or high-yield, bonds. HYG pays more income but carries materially higher default risk and tends to fall harder during economic stress. LQD trades some yield for higher credit quality and steadier behavior.
How do I compare LQD to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. LQD's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to July 2026; verify current figures against iShares's fund page or your broker before investing.