Overview
The benchmark investment-grade corporate bond ETF tracking the Markit iBoxx USD Liquid Investment Grade Index. Holds 2,500+ bonds from top US and global corporations with ratings of BBB or higher.
Top Holdings
| Ticker | Holding | Weight |
|---|---|---|
| AAPL 3.0% 27 | Apple Inc. | 1.8% |
| MSFT 2.4% 26 | Microsoft Corp. | 1.6% |
| JPM 3.875% 25 | JPMorgan Chase | 1.4% |
| BAC 3.5% 26 | Bank of America | 1.3% |
| T 2.3% 27 | AT&T Inc. | 1.2% |
| CMCSA 3.15% 26 | Comcast Corp. | 1.1% |
| GS 3.5% 26 | Goldman Sachs | 1.0% |
| VZ 2.625% 26 | Verizon Comm. | 0.9% |
| WFC 3.0% 26 | Wells Fargo | 0.9% |
| BA 3.6% 26 | Boeing Co. | 0.8% |
Fund Details
Investment Thesis
LQD provides meaningful yield pickup over US Treasuries while maintaining investment-grade credit quality across 2,500+ corporate bonds. The spread between investment-grade corporates and Treasuries historically compensates investors for modest credit risk while avoiding the default risk of high-yield debt. LQD's deep liquidity and 0.14% expense ratio make it the institutional standard for IG corporate bond allocation.
Who It's For
Income investors seeking higher yield than government bonds without moving into speculative high-yield territory. LQD suits those building a diversified fixed income allocation who want exposure to America's strongest corporations. A natural complement to AGG or BND for investors who want to increase the income-generating component of their fixed income allocation within investment-grade quality parameters.
10-Year History
| Year | Close | % Chg |
|---|---|---|
| 2016 | $118.82 | -- |
| 2017 | $124.42 | +4.7% |
| 2018 | $114.18 | -8.2% |
| 2019 | $128.82 | +12.8% |
| 2020 | $137.42 | +6.7% |
| 2021 | $130.82 | -4.8% |
| 2022 | $103.18 | -21.1% |
| 2023 | $105.42 | +2.2% |
| 2024 | $107.18 | +1.7% |
| 2025 | $109.42 | +2.1% |
| Year | Yield |
|---|---|
| 2016 | 3.42% |
| 2017 | 3.18% |
| 2018 | 3.62% |
| 2019 | 3.38% |
| 2020 | 2.92% |
| 2021 | 2.68% |
| 2022 | 3.62% |
| 2023 | 4.42% |
| 2024 | 4.82% |
| 2025 | 5.02% |
| Year | AUM | % Chg |
|---|---|---|
| 2016 | $24B | -- |
| 2017 | $30B | +25.0% |
| 2018 | $32B | +6.7% |
| 2019 | $38B | +18.8% |
| 2020 | $52B | +36.8% |
| 2021 | $48B | -7.7% |
| 2022 | $36B | -25.0% |
| 2023 | $38B | +5.6% |
| 2024 | $42B | +10.5% |
| 2025 | $48B | +14.3% |
Historical figures are ETFHub estimates modelled from asset-class return patterns and may differ from official fund records. Data as of August 2026.
Related Bonds & Treasuries ETFs
Markets. Intelligence. Daily.
Full briefs on 251 ETFs, curated daily ETF news, and a free weekly deep-dive newsletter — all on ETFHub.
Get the Free Weekly Brief Explore the ETF Portal Official Fund Page →