LQD ETF

I maintain a buy rating on LQD due to its solid 4.8% yield and favorable technical momentum, despite the Fed's rate cuts. LQD offers exposure to a broad range of U.S. investment-grade corporate bonds, with a YTM of 4.82% as of September 2024. The ETF's technicals are strong, with shares trending higher, a bullish RSI, and a breakout above key resistance levels.

Are we going to have a recession? Are we already in a recession?

Plenty of investors may be out of office this summer, but ETFs aren't on vacation. Despite ETFs frequently seeing Summer lulls, this year inflows are nearing a record pace.

Fed pivots towards rate-cutting cycle, potential end of a bear market. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) offers broad exposure to US investment-grade corporate bond market. LQD has diverse holdings, low credit risk, 4.32% yield, and potential for upside appreciation.

Is it a good idea to purchase insurance for your bond portfolio in case interest rates increase?

3 Current Market Trends Influencing Investment-Grade Bonds and LQD

The article reviews the iShares iBoxx Investment Grade Corporate Bond ETF as a potential investment at its current market value. I accurately anticipated a favorable buying opportunity for bonds in late 2023, but foresee limited potential for IG-rated corporate bonds in 2024. IG-rated corporations are facing tight spreads and continue to be affected by inflation and the lack of action from the Federal Reserve.

Credit risk and bond durations are important considerations in the current economic environment. We think the iShares iBoxx $ Investment Grade Corporate Bond ETF offers safe credit exposure. Key metrics suggest the ETF's credit migration risk is stable, and its duration and convexity provide the potential for price gains.

Bonds are back, baby. Let's talk about three funds that pay—between 8.3% and 10.9%.