The iShares Interest Rate Hedged Corporate Bond ETF (LQDH) is managed by BlackRock, one of the world's largest asset management firms. Established to track the BlackRock Interest Rate Hedged Corporate Bond Index, LQDH seeks to minimize interest rate risk by employing up to 10 interest rate swap contracts with various maturities. As of October 31, 2022, the ETF includes approximately 12 components within the Underlying Index and holds around 2,542 components in the Underlying Fund. LQDH primarily invests in U.S. dollar-denominated, investment-grade corporate bonds and employs interest rate swaps to hedge duration exposure, all while aiming to replicate the performance of the Underlying Index before fees and expenses.
The iShares Interest Rate Hedged Corporate Bond ETF (LQDH) focuses on tracking the performance of the BlackRock Interest Rate Hedged Corporate Bond Index. While the primary objective of this ETF is to minimize interest rate risk, it also distributes dividends to investors. Dividends from LQDH are typically distributed on a periodic basis, reflecting the interest income generated by the U.S. dollar-denominated, investment-grade corporate bonds in the underlying index. To be eligible for inclusion in the underlying index, bonds must have at least three years to maturity, ensuring a level of stability. LQDH utilizes interest rate swap contracts to hedge the portfolio's duration exposure, aiming to minimize the impact of interest rate fluctuations on the fund's performance. Investors in LQDH can expect consistent dividend distributions, making it an attractive option for those seeking income while managing interest rate risk in their investment portfolio.
At the heart of the strategy for the iShares Interest Rate Hedged Corporate Bond ETF (LQDH) is the meticulous tracking of the Bloomberg Barclays U.S. Corporate Bond Interest Rate Hedged Index. LQDH's portfolio comprises a selection of investment-grade corporate bonds, while the interest rate hedging component is designed to mitigate the impact of rising interest rates. Investors seeking stability in fixed-income investments may find LQDH an attractive option, as it endeavors to provide a balance between corporate bond exposure and interest rate risk management within the U.S. market.
The correlation aspect of the iShares Interest Rate Hedged Corporate Bond ETF (LQDH) primarily revolves around its objective to minimize interest rate risk. LQDH aims to track the BlackRock Interest Rate Hedged Corporate Bond Index, which consists of U.S. dollar-denominated, investment-grade corporate bonds with interest rate swaps designed to hedge against changes in interest rates. Given its unique strategy, LQDH's correlation with traditional bond funds and the broader fixed-income market may differ significantly. To gain a deeper understanding of LQDH's correlations and assess its effectiveness in hedging interest rate risk, investors can utilize the ETF insider web app. This tool provides comprehensive data and visualization tools to analyze correlations, helping investors make informed decisions about their bond portfolios and interest rate exposure.
The iShares Interest Rate Hedged Corporate Bond ETF (LQDH) focuses on the corporate bond sector while actively managing interest rate risk exposure. This ETF aims to provide investors with exposure to U.S. dollar-denominated, investment-grade corporate bonds while minimizing the impact of interest rate fluctuations on the portfolio. LQDH employs interest rate swap contracts with different maturities to hedge against changes in interest rates, which helps maintain stability in the fund's returns. This strategy makes LQDH suitable for investors seeking a balance between corporate bond investments and interest rate risk management.
The exposure of the iShares Interest Rate Hedged Corporate Bond ETF (LQDH) is centered around its mission to minimize interest rate risk in the U.S. dollar-denominated, investment-grade corporate bond market. LQDH achieves this by employing up to 10 interest rate swap contracts with varying maturities, skillfully managed to hedge the portfolio''s duration exposure at key points along the yield curve. By doing so, this ETF aims to provide investors with a means to invest in corporate bonds while mitigating the impact of interest rate fluctuations.
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