SLQD - SLQD: Good Short-Term Investment-Grade Bond ETF But Better Choices Out There (Rating Downgrade)

2024-02-10 03:55:18 ET

Summary

• SLQD is a short-term investment-grade corporate bond index ETF.
• The fund offers investors diversified exposure to high-quality bonds and a low but rapidly growing 3.1% yield.
• Although there is nothing significantly wrong with the fund, it compares unfavorably to JAAA.

I last wrote about the iShares 0-5 Years Investment Grade Corporate Bond ETF (NASDAQ: SLQD ) late last year . In that article, I argued that the fund's safe holdings and good forward yield make it a reasonable investment opportunity, but only appropriate for more conservative investors. The fund has returned 8.3% since, outperforming relative to most high-quality bonds and fixed-income securities including t-bills. Returns were in-line with expectations, although nothing extraordinary....

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