What is LQDW?

LQDW uses a fund-of-fund approach to passively track an index that measures the performance of holding shares of the iShares iBoxx USD Investment Grade Corporate Bond ETF and writes one-month call options against the shares.

PERFORMANCE [as of 11/25/22] 1 MONTH 3 MONTHS YTD 1 YEAR 3 YEARS 5 YEARS 10 YEARS
LQDW -0.18% -10.84% -- -- -- -- --
LQDW (NAV) -0.30% -10.99% -- -- -- -- --
CBOE LQD BuyWrite Index -- -- -- -- -- -- --
Bloomberg Barclays US Aggregate Corporate Index -- -- -- -- -- -- --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

LQDW Factset Analytics Insight

LQDW is one of the first bond ETFs to utilize a buy-write strategy. The fund holds shares of the iShares iBoxx USD Investment Grade Corporate Bond ETF (ticker: LQD), one of the first bond ETFs offered in the US, and writes (sells) one-month covered call options. The objective is to provide additional income, in the form of option premium, along with the distributions received from the underlying bond portfolio. The fund will write call options up to the full amount of the shares being held in the portfolio. In doing so, the fund takes in option premium but forgoes the upside potential on the bonds at the strike price. The fund uses European-style options, which means the call options can only be exercised on the expiration date. This helps to roll the call options and reduces the chance the fund has to physically deliver underlying shares. This strategy may outperform in periods of rising rates and widening credit spreads. In periods of declining rates, the fund will likely underperform as compared to just holding investment grade bonds.

LQDW Summary Data

Blackrock
08/18/22
0.34%
$13.33M
CBOE LQD BuyWrite Index
Bloomberg Barclays US Aggregate Corporate Index
Open-Ended Fund

Peers

Bloomberg Barclays US Aggregate Corporate Index

Fund Flows

$0.00B 5 Days
-$0.00B 30 Days
+$0.01B 90 Days

LQDW Portfolio Data

--
--
--
N/A
--

LQDW Index Data

CBOE LQD BuyWrite Index
Fixed
Fixed
Bloomberg Barclays US Aggregate Corporate Index

LQDW Portfolio Management

0.34%
--
--
--

LQDW Tax Exposures

20.00% / 39.60%
--
Ordinary income
No

LQDW Fund Structure

Open-Ended Fund
No
No
-- / --
N/A
N/A
Low
Daily

Factset Analytics Block Liquidity

As of 11/28/22

This measurement shows how easy it is to trade a $1 million USD block of LQDW. LQDW is rated a N/A out of 5.

LQDW Tradability

9,119
$330.21K
5,199
$184.03K
0.09%
$0.03
0.05%
0.55% / -0.10%
None
--
--
--
--
--
0
$35.56
N/A

LQDW Sector/Industry Breakdown

LQDW Segment
Benchmark
99.30% --
0.70% --

LQDW Top 10 Holdings

0.70%
100.00%

LQDW Performance Statistics

--
--
--
--
--

LQDW Avg Life Maturity Distribution

--
--
--
--
--
--
--
--
--

LQDW OAS Breakdown

--
--
--
--
--
--
--
--
--
--
--

LQDW Holdings Statistics

--
--
--
--
--
--
--

Options Strategies for Outcome Investing

A collar strategy is a protective option strategy constructed by writing a call and buying a put with the same expiration date while being long the underlying security.