What is the primary difference in expense ratios between IGBH and LQDH?

IGBH has a lower expense ratio of 0.14%, compared to LQDH's 0.24%. Over time, this 0.10 percentage point difference means IGBH retains more of its gross return for investors, assuming all other factors are equal. Lower fees are generally advantageous for long-term holding, as they reduce the cumulative drag on investment performance. However, fees are just one factor among many, such as yield and liquidity, when comparing two interest-rate hedged bond funds within the same category.

How do the net asset sizes of these two funds compare?

LQDH has a larger fund size with $577 million in net assets, whereas IGBH is smaller at $248 million. Generally, larger funds may offer better liquidity, making it easier to buy or sell shares without significantly affecting the market price. While IGBH's smaller size might raise questions about liquidity, it also potentially allows for different operational efficiencies. Investors should consider that asset size is a key metric for understanding how easily they can enter or exit positions in an ETF.

What does 'interest-rate hedged' imply for these bond ETFs?

Both IGBH and LQDH fall under the Ultrashort Bond category and employ interest-rate hedging strategies. This typically means they use derivatives, such as futures or swaps, to reduce the fund's sensitivity to changes in interest rates. The goal is to isolate the credit risk of the underlying bonds while neutralising the interest-rate risk component. This strategy aims to provide income with less volatility relative to unhedged bond funds, though it introduces distinct complexities regarding counterparty risk and hedging effectiveness that differ from standard bond investing.

How do the dividend yields of IGBH and LQDH compare?

LQDH offers a higher dividend yield of 5.80%, compared to IGBH's 5.33%. For income-focused investors, this difference indicates that LQDH currently distributes more cash per share relative to its price. However, a higher yield does not guarantee better total returns, as it may reflect different underlying bond maturities, credit qualities, or hedging costs. Both funds provide steady income streams, but the choice between them depends on whether an investor prioritises higher current income (LQDH) or potentially lower fees (IGBH) within the hedged bond space.

What is the difference in the inception dates of these funds?

LQDH has a slightly longer track record, with an inception date of May 27, 2014, compared to IGBH, which launched on July 22, 2015. While IGBH's operating history is reasonable for a specific hedging strategy, LQDH has been in existence for approximately one year longer. A longer history can provide more data for assessing how the fund has performed under various market conditions, although past performance is not a guarantee of future results. Both dates are close enough that neither offers a significantly more extended historical record.

Are there any shared top holdings between IGBH and LQDH?

The data indicates that there are none among the listed top holdings for IGBH and LQDH. This lack of overlap suggests that while both funds are interest-rate hedged bond ETFs, they may be tracking different indices or holding different underlying corporate bonds to achieve their strategies. This differentiation is crucial for investors seeking diversification, as non-overlapping holdings can reduce the correlation between the two funds, potentially offering a broader spread of credit risks despite both falling under the Ultrashort Bond category.

How does LQDH's heavy reliance on LQD affect its structure?

LQDH's performance is heavily dependent on the underlying fund, LQD, which comprises 93.74% of its holdings. This structure implies that LQDH essentially acts as a wrapper around LQD, applying hedging strategies to the corporate bond exposure provided by the parent fund. In contrast, IGBH's top holdings are not available, so it is unclear if it uses a similar nested approach or holds individual bonds directly. Understanding this dependency is vital, as LQDH's market movements will closely mirror LQD's performance, adjusted by the cost and effectiveness of the interest-rate hedge.

What is known about the indices tracked by IGBH and LQDH?

For both IGBH and LQDH, the specific index tracked is not available in the provided data. This lack of transparency regarding the underlying benchmark makes it difficult to directly compare their methodology or replication strategies. Investors seeking to understand exactly how each fund constructs its hedged bond portfolio would need to consult the official fund prospectuses or fact sheets, as the generic ETF comparison data here does not specify the target indices. This absence of index detail limits the ability to assess tracking error or precise market exposure.

Is sector weight data available for these ETFs?

Sector weight data is not available for either IGBH or LQDH. Without this information, investors cannot determine the specific industrial or economic sector allocations within these corporate bond funds. This limits the ability to assess potential concentration risks in particular sectors, such as energy, financials, or technology. While LQDH's reliance on LQD suggests its sector composition would align with LQD's corporate bond universe, the lack of explicit sector weight data for both funds hinders detailed portfolio analysis based solely on this comparison.

Which fund might be more suitable for low-cost investing?

IGBH might be more suitable for investors prioritising cost efficiency, given its lower expense ratio of 0.14% compared to LQDH's 0.24%. While LQDH offers a higher yield and larger asset base, the fee differential of 0.10 percentage points can compound over time. For investors holding these ETFs in a portfolio for an extended period, the lower ongoing costs of IGBH could provide a slight advantage in net return, assuming the yields and hedging effectiveness remain comparable between the two funds.

How should investors interpret the 'not available' data points?

When data points such as top holdings, sector weights, or index details are listed as 'not available', it indicates that this specific information is not provided in the current dataset rather than that the fund lacks such details. For IGBH and LQDH, this limits transparency in the comparison. Investors should not assume these funds hold no top holdings or sectors; instead, they must recognise that further due diligence is required by consulting official documentation from the issuer, iShares, to fully understand the composition and strategy of these ultrashort bond ETFs.

IGBH vs LQDH

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare IGBH and LQDH, two interest-rate hedged bond ETFs from iShares. Explore their fees, holdings, dividends and market-tracking methods. IGBH (0.14% expense ratio, 5.33% yield) and LQDH (0.24% expense ratio, 5.80% yield) offer distinct ultrashort bond exposures. Educational content, not financial advice.

Compare IGBH and LQDH, two interest-rate hedged bond ETFs from iShares. Explore their fees, holdings, dividends and market-tracking methods. IGBH (0.14% expense ratio, 5.33% yield) and LQDH (0.24% exp...

Fund Snapshot

Key Fund Metrics

IGBH

Metric

LQDH

0.14%

Expense Ratio

0.24%

5.33%

Dividend Yield

5.80%

$248.20M

Net Assets

$576.51M

349

Holdings

214

Jul 22, 2015

Inception Date

May 27, 2014

–

Index Tracked

–

Ultrashort Bond

Fund Category

Ultrashort Bond

IGBH costs about $10.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

LQD vs LQDH

Compare LQD and LQDH: 0.14% vs 0.24% expense ratios, 4.77% vs 5.80% yields, and LQDH's 93.74% LQD holding. Index tracking data is not available.

Investment Analysis

IGBH

Pros

IGBH features a relatively low expense ratio of 0.14% for an interest-rate hedged bond fund.
The fund offers a competitive dividend yield of 5.33%, providing steady income to investors.
Launched in 2015, IGBH has a reasonable operating history for this specific hedging strategy.

Considerations

The fund is smaller in size, with net assets of $248 million, which may impact liquidity.
Details regarding the specific index tracked by IGBH are not available to investors.
Current top holdings and sector weight data for IGBH are not provided, limiting transparency.

LQDH

Pros

LQDH is larger than its peer, with $577 million in net assets supporting its operations.
An inception date of May 2014 means it has a slightly longer track record than IGBH.
It provides a higher dividend yield of 5.80%, appealing to income-focused investors.

Considerations

The fund's expense ratio of 0.24% is higher than that of the comparable IGBH fund.
LQDH's performance is heavily dependent on the underlying LQD fund, which comprises 93.74% of its holdings.
Information about the specific index LQDH tracks is not available, reducing some transparency.

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IGBH vs LQDH

Fund Snapshot

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Investment Analysis

IGBH

Pros

Considerations

LQDH

Pros

Considerations

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