At a glance
LQD charges 0.14% a year, above the 0.13% average of the 7 funds most like it (the 5th cheapest of 8). It has $32.04B in assets, the 2nd largest of that group; it paid 4.86% of its price in distributions over the past 12 months, monthly. Over the past year it returned −2.3% with distributions reinvested, the weakest of those 8 funds; over three years it returned +5.2% a year. At its worst it fell 21.8% in the 2020 crash (S&P 500: 33.7%) and 21.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 41 months after the lows. Its ten largest positions make up 1.6% of the fund, out of 3,165 in all.
The short version
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is a BlackRock index fund holding thousands of investment-grade bonds, mostly from US companies rated relatively likely to repay. It pays income monthly, but its 13-year average maturity as of August 31, 2026, longer than any of seven similar funds, makes its price more sensitive to interest rates. Its 0.14% fee is well above the 0.03% to 0.04% charged by VCIT, USIG and IGIB.
Price history
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LQD -2.3% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| LQD official prospectus, to Dec 31, 2025 | — | +8.00% | — | -0.78% | +3.19% | — |
| Bloomberg US Universal Index index, same period | — | +7.58% | — | +0.06% | +2.44% | — |
| Iboxx USD Liquid Investment Grade Index index, same period | — | +8.03% | — | -0.67% | +3.33% | — |
| LQD price data to Nov 2, 2026 | -2.5% | -2.3% | +5.2% | -1.0% | +2.0% | +3.8% |
- Over the year to Nov 2, 2026, LQD returned -2.3%, 8th of 8 among similar funds.
- Its 5-year annualized return was -1.0% and its 10-year +2.0%.
- In the 2020 COVID crash it fell 21.8% and regained its old high 2.7 months after the low.
- Its worst full calendar year was 2022 (-17.9%); its best was 2019 (+17.4%).
- The deepest fall in its price history was 25% (Sep 22, 2021 to Oct 20, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -2.5% | — |
| 2025 | +7.9% | +8.00% |
| 2024 | +0.9% | +0.99% |
| 2023 | +9.4% | +9.27% |
| 2022 | -17.9% | -18.01% |
| 2021 | -1.8% | -1.57% |
| 2020 | +11.0% | +11.14% |
| 2019 | +17.4% | +17.13% |
| 2018 | -3.8% | -3.76% |
| 2017 | +7.0% | +7.16% |
| 2016 | +6.2% | +5.97% |
| 2015 | -1.3% | — |
| 2014 | +8.2% | — |
| 2013 | -2.0% | — |
| 2012 | +10.6% | — |
| 2011 | +9.8% | — |
| 2010 | +9.3% | — |
| 2009 | +8.5% | — |
| 2008 | +2.4% | — |
| 2007 | +3.7% | — |
| 2006 | +4.2% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 6.8% over that stretch · deepest drop along the way 21.5%, back to its old high 3.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 12.3% over that stretch · deepest drop along the way 21.8%, back to its old high 2.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 21.1% over that stretch · deepest drop along the way 21.2%, back to its old high 40.6 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.7900 | |
| 2025 | $4.9300 | +3.8% |
| 2024 | $4.7500 | +7.7% |
| 2023 | $4.4100 | +27.1% |
| 2022 | $3.4700 | +13.8% |
| 2021 | $3.0500 | -17.1% |
| 2020 | $3.6800 | -12.8% |
| 2019 | $4.2200 | +1.9% |
| 2018 | $4.1400 | +9.8% |
| 2017 | $3.7700 | -3.6% |
| 2016 | $3.9100 | -1.3% |
| 2015 | $3.9600 | -2.5% |
| 2014 | $4.0600 | -7.3% |
| 2013 | $4.3800 | -5.4% |
| 2012 | $4.6300 | -7.6% |
| 2011 | $5.0100 | -4.9% |
| 2010 | $5.2700 | -7.9% |
| 2009 | $5.7200 | +4.8% |
| 2008 | $5.4600 | -4.5% |
| 2007 | $5.7200 | +6.4% |
| 2006 | $5.3745 |
Living on LQD: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Aug 31, 2026, the fund held 3,165 securities; the ten largest made up 1.59% of assets, and 11.08% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| ANHEUSER-BUSCH CO/INBEV Bonds and notes | 0.18% | |
| CVS HEALTH CORP Bonds and notes | 0.17% | |
| T-MOBILE USA INC Bonds and notes | 0.17% | |
| SPACE EXPLORATION TECH Bonds and notes | 0.17% | |
| META PLATFORMS INC Bonds and notes | 0.16% | |
| CHARTER COMM OPT LLC/CAP Bonds and notes | 0.15% | |
| CHARTER COMM OPT LLC/CAP Bonds and notes | 0.15% | |
| AMAZON.COM INC Bonds and notes | 0.14% | |
| SPACE EXPLORATION TECH Bonds and notes | 0.14% | |
| META PLATFORMS INC Bonds and notes | 0.14% | |
| GOLDMAN SACHS GROUP INC Bonds and notes | 0.14% | |
| AMAZON.COM INC Bonds and notes | 0.14% | |
| PFIZER INVESTMENT ENTER Bonds and notes | 0.14% | |
| META PLATFORMS INC Bonds and notes | 0.14% | |
| SPACE EXPLORATION TECH Bonds and notes | 0.14% |
By country
United States 85.55%United Kingdom 3.44%Canada 2.42%Japan 1.8%Netherlands 0.86%By issuer
Companies 96.01%Other 1.61%The bonds mature in 13 years on average (weighted by size), with an average coupon of 4.73%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $3.27B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.10%, -2.33%, +0.45%.
How it works
LQD tracks the iBoxx USD Liquid Investment Grade Index, a rules-based index from S&P Dow Jones Indices, independent of BlackRock. Eligible bonds are US-dollar debt from companies based in developed markets, with an average investment-grade rating from Fitch, Moody's or S&P, meaning agencies judge default risk relatively low. Each bond needs at least $750 million outstanding, its issuer at least $2 billion, and at least three years to maturity (three and a half for new additions). Bonds with under three years left drop out, keeping the fund in longer-dated debt.
Bonds are weighted by market value, so bigger borrowers count for more, but each issuer is capped at 3%. As of February 28, 2026, the index leaned toward consumer goods and services companies and financials. BlackRock uses representative sampling, holding a sample of bonds chosen to match the index's interest-rate sensitivity, maturity, credit ratings and yield. At least 80% of assets must be in index bonds; up to 10% may go into derivatives such as futures, options and swaps, or other bonds that aid tracking.
The fund doesn't try to beat the index or move to cash in downturns. Turnover, the yearly share of holdings replaced, was 16% per its June 18, 2026 prospectus. It may lend bonds worth up to a third of its total assets.
What it really costs
- LQD charges 0.14% a year, versus an average of 0.13% for the similar funds below (5th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $14 in the first year and $179 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| LQD | $14 | $45 | $79 | $179 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It pays income monthly from thousands of investment-grade corporate bonds, though its price fell more than 20% in each of the 2008, 2020 and 2022 slumps.
LQD could add monthly income from a wide spread of large companies' bonds. Its trailing 12-month yield, meaning income paid over the past year divided by the share price, was 4.83% as of October 27, 2026, and its annual fee (expense ratio) is 0.14%. The catch is price risk. It fell 21.5% in 2008 and 21.8% in March 2020, recovering in about three months each time. In 2022 it fell 21.2% and took 40.6 months to recover; that was also its worst calendar year, with an 18.01% loss. Its deepest drop, 25% from September 2021 to October 2022, had not been fully recovered as of October 27, 2026.
For someone drawing income, the monthly payouts help, but cashing out shares during a slump like 2022 would have locked in losses. Past results don't predict the future, and a plan needs to consider the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers wanting monthly payouts from investment-grade corporate bonds; the trailing 12-month yield was 4.83% as of October 27, 2026.
- Investors who want risk spread thinly: about 3,165 holdings, with the 10 largest totaling just 1.59% of assets as of August 31, 2026.
- Those preferring a large, long-running fund: about $32.0 billion in net assets as of August 31, 2026, and launched in July 2002.
Look elsewhere if
- Cost-focused investors: the 0.14% expense ratio is more than triple the 0.03% to 0.04% charged by VCIT, USIG and IGIB.
- Anyone needing price stability: it lost 18.01% in 2022, and its 13-year average maturity keeps it sensitive to interest-rate moves.
- Those seeking a cushion when stocks crash: it fell 21.8% in March 2020 and 21.5% in 2008.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| LQD this fund | 13 yrs | 0.14% | $32.04B | -2.3% | +5.2% |
| IG Principal Investment Grade Corporate Active… | 12.7 yrs | 0.19% | $199.1M | -1.7% | +6.3% |
| JAAA Janus Henderson AAA CLO ETF | 11.4 yrs | 0.2% | $29.21B | +4.9% | +6.1% |
| GIGB Goldman Sachs Access Investment Grade Corpo… | 11 yrs | 0.08% | $1.01B | -1.7% | +6.1% |
| FLCO Franklin Investment Grade Corporate ETF | 10.9 yrs | 0.35% | $586.5M | -1.9% | +6.0% |
| USIG iShares Broad USD Investment Grade Corporat… | 10.3 yrs | 0.04% | $17.85B | -0.9% | +5.7% |
| IGIB iShares 5-10 Year Investment Grade Corporat… | 8.3 yrs | 0.04% | $18.72B | -1.0% | +6.4% |
| VCIT Vanguard Intermediate-Term Corporate Bond E… | 8.2 yrs | 0.03% | $72.04B | -0.6% | +7.1% |
Questions investors ask
Does LQD pay monthly dividends?
Yes. LQD pays income every month, drawn from interest on its corporate bonds. Over the 12 months to October 27, 2026, it paid $5.04 per share, a trailing yield of 4.83%. The bonds' average coupon, or stated interest rate, was 4.73% as of August 31, 2026. Payouts can shrink: the prospectus warns income may fall if rates drop and maturing or called bonds are replaced with lower-yielding ones.
What are LQD's top holdings?
LQD's top holdings are small slices of a very wide portfolio. As of August 31, 2026, its largest single bond, from Anheuser-Busch InBev, was 0.18% of assets, followed by bonds from CVS Health, T-Mobile USA, SpaceX and Meta Platforms at 0.16% to 0.17% each. SpaceX and Meta each had three bonds among the 15 largest positions. The top 10 made up just 1.59% of assets, across roughly 3,165 holdings. About 86% of assets were in US companies, with the UK at 3.4% and Canada at 2.4%.
What's the difference between LQD and USIG?
The main difference is cost: USIG charges 0.04% a year, against 0.14% for LQD. Both are iShares investment-grade corporate bond ETFs, but LQD holds longer bonds: a 13-year average maturity versus 10.3 years for USIG, so it reacts more to interest rates. LQD is larger, with about $32.0 billion in net assets to USIG's $17.8 billion as of August 31, 2026. Through October 27, 2026, USIG returned -1.5% over one year versus -3.2% for LQD; three-year annual returns were nearly identical, at 6.3% and 6.2%.
Is LQD a safe investment?
Not if safe means a steady price. LQD holds investment-grade bonds, so defaults are less likely than with lower-rated junk bonds, but its price can drop sharply. It fell 21.5% in 2008, 21.8% in March 2020 and 21.2% in 2022, and 2022 was its worst calendar year, with an 18.01% loss. The 2008 and 2020 drops were recovered within three and a half months; the 2022 drop took 40.6 months to recover. Over the 10 years to December 31, 2025, it returned 3.19% a year on average.
What is LQD's expense ratio?
LQD's expense ratio, the yearly fee taken from fund assets, is 0.14%, per its June 18, 2026 prospectus. In the SEC's standard example of $10,000 invested with a 5% annual return, costs would total about $14 over one year, $45 over three, $79 over five and $179 over ten. That is close to the 0.13% average of seven funds matched on maturity and issuer mix, but more than triple the 0.03% to 0.04% charged by VCIT, USIG and IGIB.