Should I Buy iShares Investment Grade Corporate Bond ETF (LQD)? Finance YouTuber Analysis

The YouTuber suggests LQD, an ETF that invests in longer-term corporate bonds, offering a higher income of 4.5% to 5.2% per year. He notes that while it provides more income, its price can be more volatile, potentially dropping 7-8% if interest rates rise by 1%.

“Now there's another one which is called LQD and this fund holds longerterm company loans. They pay 4 and a half to 5.2% per year a bit more income but the price bounces around a bit more.”

The YouTuber recommends the iShares Investment Grade Corporate Bond ETF (LQD) for its 4.3% dividend and safety, particularly during stock market crashes. He notes its resilience, falling only 13% in 2008 compared to stocks' 50% drop, and its holdings of over 2,800 high-quality corporate bonds from major companies.

“next here giving you the safety of bonds is the ishares investment grade corporate bond ETF the lqd with its 4.3% dividend”

The YouTuber recommends LQD as a slightly riskier bond fund option, holding bonds of high-quality companies. He expects its value to rise faster than AGG as interest rates fall due to its longer-term bonds, offering higher price upside in addition to its 4.2% dividend yield.

“another bond fund that could benefit is the isar investment grade corporate ETF the ticker lqd which is only a little riskier holding bonds of high quality companies like JP Morgan United Health and Oracle since these are longer term bonds in the fund value should rise faster as those interest rates fall so you're likely to see a higher price upside on top of that 4.2% dividend yield”

The YouTuber suggests LQD as a safer investment, highlighting its 4.3% dividend yield and diversification across thousands of highly rated corporate bonds. He also points out the potential for price appreciation if interest rates decline, providing an additional return opportunity.

“or the iar's investment grade corporate ETF tooker lqd paying a 4.3% dividend both of these hold thousands of bonds of highly rated companies.”