“LQD’s trading volumes have climbed as investors recognized the fund’s utility. Liquidity, as measured by average daily volume, has grown steadily; liquidity spurred more liquidity, and encouraged additional adoption by institutional investors,” according to BlackRock.

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Data indicate LQD is more heavily traded than even some of the most liquid investment-grade corporate bonds.

“Last year was the first time that LQD’s average daily volumes surpassed that of the most liquid individual investment grade bonds, including Verizon and JP Morgan,” said BlackRock. “Earlier this year, LQD broke the record for the single-largest ‘block’ trade in bond ETF history, a signal that large, institutional investors are confident about their ability to trade and manage risk with LQD in size.”

For more trends in fixed income, visit the Fixed Income Channel.