SLQD

The iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD) is an exchange-traded fund designed to provide exposure to short-duration investment-grade corporate bonds issued by U.S. companies. The ETF is managed by BlackRock through its iShares division and trades under the ticker SLQD on the Nasdaq.

Classified as a short-duration investment-grade corporate bond ETF, the fund seeks to reflect, before fees and expenses, the performance of the Markit iBoxx USD Liquid Investment Grade 0-5 Index.

The ETF follows a passive management strategy, maintaining a portfolio structured to replicate the composition and weighting of its benchmark index. The benchmark includes U.S. dollar-denominated investment-grade corporate bonds issued by companies with shorter-term maturities.

Composition / Exposure profile

SLQD provides exposure primarily associated with:

• Investment-grade corporate bonds.
• U.S. corporate credit.
• Short-term corporate bonds.
• U.S. investment-grade issuers.
• Corporate fixed-income markets.
• Lower duration exposure.
• Credit spreads.
• U.S. short-term interest rates.

The ETF’s performance is particularly sensitive to corporate-credit-market conditions and changes in Federal Reserve monetary policy.

Because the fund holds shorter-duration bonds, its interest-rate sensitivity is generally lower compared to longer-maturity corporate bond ETFs. Even so, changes in credit spreads, economic deterioration, and shifts in interest-rate expectations may directly affect the ETF’s behavior.

Structure and costs

SLQD shares trade on the secondary market on the Nasdaq during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. SLQD may distribute income derived from interest payments generated by the corporate bonds held within the portfolio.

Because the ETF maintains exposure to short-duration investment-grade bonds, its behavior tends to reflect movements in U.S. corporate-credit markets and short-term interest-rate conditions.

History and evolution of the ETF

The iShares 0-5 Year Investment Grade Corporate Bond ETF was launched in 2013 during a period marked by growing demand for corporate fixed-income instruments with lower duration sensitivity.

Since inception, the fund has reflected movements associated with the U.S. investment-grade corporate bond market, including changes in interest rates, fluctuations in credit spreads, and developments in corporate-financing conditions.

In recent years, SLQD has reflected Federal Reserve tightening cycles, changes in the U.S. yield curve, and fluctuations in liquidity and credit conditions within American corporate-bond markets.

Additional Information

iShares 0-5 Year Investment Grade Corporate Bond ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $2.35 Billions.

Over the past 12 months, iShares 0-5 Year Investment Grade Corporate Bond ETF recorded a return of 4.41%, with its price trading between $50.13 and $50.97 during the same period.

The ETF is traded under the ticker SLQD.