The iShares iBoxx Investment Grade Corporate Bond Fund (NYSEArca: LQD) is the best-selling bond ETF in 2012 with over $5 billion of inflows as yield-hungry investors migrate to corporate debt.
LQD holds $23.8 billion in assets and offers a 12-month yield of 4%, according to manager BlackRock.
The bond ETF has hauled in $5.2 billion of inflows year to date through the end of July, according to ETF Industry Association data.
ETFs that track corporate high-yield or “junk” bonds have also been popular with investors on the hunt for yield. [Are High-Yield Bond ETFs in a Bubble?]
LQD has been a solid performer in 2012 with a total return of 7.7%, according to Morningstar. The bond ETF is lower for the month of August but has bounced at its 50-day simple moving average.