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iShares Interest Rate Hedged Corporate Bond ETF upgraded to Buy for effective rate hedging amid rising rates.

Analyst Insights
24 Jun 2026
Seeking Alpha
View Source
Bullish
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Fred Piard upgraded the iShares Interest Rate Hedged Corporate Bond ETF (LQDH) to Buy due to renewed upward pressure on interest rates and the ETF's effective hedging performance. LQDH has outperformed the standard corporate bond ETF (LQD) in rising rate environments with lower volatility, making it a safer choice despite its lower 30-day SEC yield (4.74% vs. 5.25%). Investors are advised to switch from LQD to LQDH until the end of the year to better manage interest rate risk. This update reflects ongoing analysis of real-world portfolio performance and market conditions.

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