LQD remains a pretty good option for investors looking for a "safe" play. It is loaded with investment grade credit, and pays a reasonable yield for this environment.
Is LQD a safe investment?
LQD has posted a positive return, albeit a small one, since my last review, in a challenging market climate. While investment grade bonds are typically a lower risk category, the duration, or interest rate, risk continues to rise significantly.
What is the duration of LQD?
LQD's effective duration of almost 8.3 years is along the middle part of the yield curve, but this is not a short-term or low-duration product.