MLQD will try to reflect the performance the Markit iBoxx USD Liquid Investment Grade Intermediate Index, while LLQD seeks to track the Markit iBoxx USD Liquid Investment Grade Long Index. Both funds will track U.S. dollar-denominated investment-grade corporate debt.
However, the new corporate bond ETFs have varying sector leanings. Specifically, MLQD’s top sector weights include banking 26.8%, consumer non-cyclical 16.8% and energy 10.8% while LLQD’s top sector positions include consumer non-cyclical 17.7%, communications 14.7% and banking 13.6%.
Furthermore, BlackRock expanded on its line of target-maturity corporate bond ETFs, adding the iShares iBonds Dec 2027 Term Corporate ETF (NYSEArca: IBDS). IBDS tries to reflect the performance of the Barclays December 2027 Maturity Corporate Index, which is comprised composed of U.S. dollar-denominated, investment-grade corporate bonds maturing in 2027.
For more information on new fund products, visit our new ETFs category.