ETF Evaluator: iShares Interest Rate Hedged Corp Bd ETF (LQDH) Follow This ETF

iShares Interest Rate Hedged Corp Bd ETF Overview

iShares Interest Rate Hedged Corp Bd ETF (LQDH) is a passively managed Taxable Bond Ultrashort Bond exchange-traded fund (ETF). iShares launched the ETF in 2014.

The investment seeks to track the investment results of the BlackRock Interest Rate Hedged Corporate Bond Index. The index is designed to minimize the interest-rate risk exposure of a portfolio composed of U.S. dollar-denominated, investment grade bonds, represented in the index by the underlying fund, by including a series of up to 10 interest rate swap contracts with different maturities. The fund invests, under normal circumstances, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in component securities and instruments in the index and/or bonds included in the underlying index of the underlying fund.

About iShares Interest Rate Hedged Corp Bd ETF (LQDH)

There are 3 members of the management team with an average tenure of 4.73 years: James Mauro (2014), Jonathan Graves (2025) and Marcus Tom (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg US Universal TR USD index with a weighting of 100% and BlackRock IR Hdg Corp Bd TR USD index with a weighting of 100%. iShares Interest Rate Hedged Corp Bd ETF has 196 securities in its portfolio. The top 10 holdings constitute 131.5% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

iShares Interest Rate Hedged Corp Bd ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. iShares Interest Rate Hedged Corp Bd ETF has 13.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 92.6% (78.9% domestic bond, 13.7% foreign bond and 0.0% convertible bond). iShares Interest Rate Hedged Corp Bd ETF has 104.0% of the portfolio in cash.

Assets Under Management

The fund has $537 million in total assets, which is below the $5 billion average for the Ultrashort Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

LQDH Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares Interest Rate Hedged Corp Bd ETF expense ratio is below average compared to funds in the Ultrashort Bond category. iShares Interest Rate Hedged Corp Bd ETF has an expense ratio of 0.24%, which is 9% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares Interest Rate Hedged Corp Bd ETF has a portfolio turnover rate of 2%, which indicates that it holds its assets around / 0.5 years. By way of comparison, the average portfolio turnover is 57% for the Ultrashort Bond category.

Recently, in the month of July 2026, iShares Interest Rate Hedged Corp Bd ETF returned -0.1%, which earned it a grade of F, as the Ultrashort Bond category had an average return of 0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

iShares Interest Rate Hedged Corp Bd ETF has a trailing yield of 5.93%, which is above the 4.07% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

iShares Interest Rate Hedged Corp Bd ETF Grades

Year to date, the ETF has returned 2.2%, 0.0 percentage points better than the category, which translates into a grade of B. The fund has returned 5.7% over the past year (grade of A), 6.9% over the past three years (grade of A) and 5.2% per year over the past five years (grade of A) and 4.5% per year over the past 10 years (grade of A).

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