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LQDWiShares Investment Grade Corporate Bond Buywrite Strategy ETF

Get income3y track recordRanked #498 of 1,650 in this goal

Tracks the investment results of the Cboe LQD BuyWrite Index.

By iShares · Launched 2022

Annual Cost

0.34%

#1,522 of 5,861 · low cost

Fund Size

$266M

#2,119 of 5,861 · mid-size

Dividend YieldGoal

9.09%

Track Record

3 years

#2,689 of 5,861 · seasoned

Performance

Total-return NAV · USD
Growth of $10,000
$10,341+3.4%

Total-return NAV, USD. Net of fund fees, before tax.

What's inside

How Beacon categorizes this fund

Asset class

Alternative

Strategy

Option income

Index tracked

Cboe LQD BuyWrite Index

What it actually holds

By weight

Concentration

Top 3 holdings = 100.0% of fundconcentrated

iShares iBoxx USD Investment Grade Corporate Bond ETF
99.9%
BLACKROCK CASH FUNDS TREASURY SL AGENCY SHARES
0.2%
Options Clearing Corp.
-0.1%

Asset allocation

Bonds
99.6%
Cash
0.4%
Convertible
0.0%

Risk profile

Last 12 months · Sharpe & Sortino need 3+ years
Volatility (1Y)
3.8%Low

Year-on-year price swings

Max drawdown
-9.2%Mild

Worst peak-to-trough loss

Sharpe (3Y)
-0.15Below average
Sortino (3Y)
-0.19Moderate downside risk

Listing

Exchange
Cboe BZX

Full fund details

Objective
Tracks the investment results of the Cboe LQD BuyWrite Index.
Strategy
Seeks to generate income by holding investment-grade corporate bonds while writing one-month call options. The strategy reflects a buy-write approach, utilizing U.S. dollar-denominated corporate bonds.
Inception date
August 18, 2022
Fund family
iShares

Our take

Structural notes on how this fund behaves. Read our guide on the 6 warning signs.

Covered call
Warning

The big yield isn't extra money

The headline distribution comes from selling call options, which caps the fund's upside. Across a full market cycle that trade costs more than it brings in — often 1 to 3 percentage points a year against just holding the index. Monthly payouts make the gap easy to miss on a return summary.

Sources: Israelov & Ndong, 'A Devil's Bargain: When Generating Income Undermines Investment Returns' (NDVR, 2023)

Educational analysis of structural product characteristics. Not investment advice. Always read the fund prospectus and consult a qualified advisor before investing. More

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Data updated on 2026-08-04