A sound investment process and strong management team underpin iShares Invm Grd Crp Bd Buywrt Stgy ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy's sensible investment philosophy merits a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in corporate bonds and an underweight in AAA rated bonds compared with category peers. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

iShares Invm Grd Crp Bd Buywrt Stgy ETF earns a High Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. The most substantial contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 92% also supports the rating. The size of the portfolio management team supports the process as well. With four portfolio managers at the helm, the fund is reasonably well-resourced.

The investment strategy as stated in the fund's prospectus is: 

The investment seeks to track the investment results of the Cboe LQD BuyWrite Index that reflects a strategy of holding the iShares iBoxx $Investment Grade Corporate Bond ETF while writing (selling) one-month call options to generate income.  The fund will seek to write call options up to (but not exceeding) the full amount of shares of the underlying fund held in the fund (i.e., the short position in the call option is offset, or “covered, and ” by the long position the fund holds in shares of the underlying fund).  

 This strategy's 12-month yield is 18.8%, higher than its average peer's 4.2%. In addition, it has a 4.0% 30-day SEC yield (a measure similar to yield-to-maturity). Higher yields tend to indicate higher credit risk. But that isn't always the case. Over the past 12 months, the average yield of the fund has been higher than the average yield of its Morningstar Category peers. The portfolio has a higher average surveyed credit quality of A, compared with the category average of BBB, and it holds no non-investment-grade assets, despite the average peers' 13%. Strategies that take on less credit risk can often weather more-adverse market conditions. In terms of long-term interest-rate risk, this strategy is on par with peers. The longer a strategy's duration, the more sensitive it is to shifts in interest rates. This fund, with an 8.4-year duration, is expected to gain 8.4% of its net asset value if interest rates drop by 1 percentage point, and vice versa.

High

Process

iShares Invm Grd Crp Bd Buywrt Stgy ETF benefits considerably from its team, earning it an Above Average People Pillar rating. There are four managers listed on the fund: Paul Whitehead, Jennifer Hsui, Greg Savage, Orlando Montalvo. Experience on the team is abundant, with 20 years of average portfolio management experience. Together, they manage a total of 10 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

Ishares Investment Grade Corporate Bond Buywrite Strategy ETF

LQDW uses a fund-of-fund approach to passively track an index that measures the performance of holding shares of the iShares iBoxx USD Investment Grade Corporate Bond ETF and writes one-month call options against the shares.

The iShares Investment Grade Corporate Bond Buywrite Strategy ETF has lost money since its launch in August 2022 due to rising yields and extreme volatility. The ETF should perform better in 2024 as high Treasury yields and implied volatility rates result in strong income, while the scope for large moved in yields has diminished. A renewed rise in inflation poses the main risk to the LQDW as it would put upside pressure on yields as well as potentially triggering a rise in volatility.

LQDW: Taking Advantage Of Elevated Bond Volatility

AGNC Investment

YieldMax AAPL Option Income Strategy ETF

ARMOUR Residential REIT

Dynex Capital

Ellington Residential Mortgage REIT

Eagle Point Credit

Ellington Financial

Simplify Bitcoin Strategy PLUS Income ETF

YieldMax NVDA Option Income Strategy ETF

Orchid Island Capital

Defiance Nasdaq 100 Enhanced Options Income ETF

Stellus Capital Investment

San Juan Basin Royalty Trust

Credit Suisse X-Links Silver Shares Covered Call ETN

YieldMax SQ Option Income Strategy ETF

iShares 20+ Year Treasury Bond BuyWrite Strategy ETF

Credit Suisse X-Links Crude Oil Shares Covered Call ETN

Imagine stocks or funds that pay-out their dividends once-a-month! Unlike waiting for quarterly, semi-annual or (ugh) annual payouts, your angst awaiting money is reduced by 300%, or more!. These January U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net-gains include: 1. Stocks by-yield (83); 2. Stocks by price-upside (30); 3. Closed-End-Investments, Exchange-Traded-Funds & Notes (CEICs/ETFs/ETNs) by-yield >10.4% (80). Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs. Equities; 4. Fund risks/rewards. All per prices as of 1/11/24.

January's 83 Monthly Paid Dividend Stocks And 80 Funds

Banco Macro

YieldMax COIN Option Income Strategy ETF

PennantPark Investment

Prospect Capital

Simplify Volatility Premium ETF

Imagine stocks or funds that pay out their dividends once a month! Unlike waiting for quarterly, semi-annual or (ugh) annual payouts, your angst awaiting money is reduced by 300% or more! These December U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net gains include: 1. Stocks by yield (79); 2. Stocks by price upside (30); 3. Closed-End-Investments, Exchange-Traded Funds & Notes (CEICs/ETFs/ETNs) by yield >9.5% (80). Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs. Equities; 4. Fund risks/rewards. All per prices as of 12/8/23.

79 Monthly-Paying Dividend Stocks And 80 Funds For December

iShares Core U.S. Aggregate Bond ETF

iShares iBoxx High Yield Corporate Bond ETF

Ishares High Yield Corporate Bond Buywrite Strategy ETF

iShares Ibonds Dec 2032 Term Corporate ETF

iShares Core S&P 500 ETF

iShares MSCI USA Quality Factor ETF

iShares 20+ Year Treasury Bond ETF

The U.S. ETF industry continues to evolve. In the first 10 months of 2023, fixed income ETFs gathered more than 40% share of the net inflows, despite representing just 20% share of the market.

Recapping BlackRock's Strong Fixed Income Flows

iShares Investment Grade Corporate Bond BuyWrite Strategy ETF aims to generate high yields by writing covered calls on investment grade corporate bonds. The fund has underperformed its underlying assets even when it theoretically should have outperformed, highlighting the limitations of covered call strategies in volatile markets. Investors can potentially improve returns by converting the fund to a covered call spread fund or by buying a mix of LQD-LQDW for high yield and upside participation.

LQDW Has Been Underperforming But It May Be Salvageable

iShares Investment Grade Corporate Bond Buywrite Strategy ETF applies a buy-write strategy to the bond market, generating additional income and reducing portfolio volatility. The LQDW ETF has underperformed compared to the iShares iBoxx $ Investment Grade Corporate Bond ETF, highlighting that yield alone does not guarantee stronger returns. LQDW can be a reliable choice for income-focused investors, offering a high-yield component in a diversified portfolio with a focus on reducing volatility.

LQDW: An Innovative Approach But Unclear In The Near Term

Quadratic Deflation ETF

Kraneshares China Internet And Covered Call Strategy Etf

Modiv

PIMCO Dynamic Income Opportunities Fund

PennantPark Floating Rate Capital

SL Green Realty

Yieldmax Tsla Option Income Etf

Imagine stocks or funds that pay out their dividends once a month! Unlike waiting for quarterly, semi-annual or (ugh) annual payouts, your angst waiting for money is reduced by 300%, or more! These August U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net-gains include: 1. Stocks by-yield (85); 2. Stocks by price-upside (30); 3. Closed-End-Investments, Exchange-Traded-Funds & Notes (CEICs/ETFs/ETNs) by-yield >8.74% (80). Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs. Equities; 4. Fund risks/rewards. All per prices as of 8/15/23.

85 Monthly Paying Dividend Stocks And 80 Funds For August

Ares Commercial Real Estate

BrightSpire Capital

British American Tobacco

Eagle Point Income Company Inc

FS Credit Opportunities Corp

FS KKR Capital Corp

Gerdau

Global Ship Lease

Yieldmax Arkk Option Income Etf

Petroleo Brasileiro

Piedmont Office Realty Trust

Pfizer

Safe Bulkers

Sibanye Stillwater

Triplepoint Venture Growth BDC

V.F.

Prior to June 30, 2023, my readers mentioned 42 equities in their comments on my articles. Some bad-news investments (Rogues) mixed with (mostly) Favorites. Thus, these are ReFa/Ro. Ten analyst-target-estimated TOP-NET-GAIN Re/Fa/Ro: GGB, PFE, VFC, SB, GSL, BTI, PDM, PBR, SBSW, and IPOOF, averaged 65.57% net gains from reader data collected 7/17/23. Ten analyst-target-augured June TOP-PRICE-UPSIDE reader faves & rogues (ReFa/Ro) were: BRSP, GGB, PFE, VFC, SB, PDM, BPI, GSL, SBSW, & IPOOF boasting a 55.56% average target price upside estimate.

Readers Reveal 30 June Dividend Buys

Gladstone Commercial

PIMCO Dynamic Income Fund

PermRock Royalty Trust - Unit

Sabine Royalty Trust

Solar Capital

Imagine stocks or funds that pay out their dividends once-a-month! Unlike waiting for quarterly, semi-annual or (ugh) annual payouts, your angst waiting for money is reduced by 300%, or more! These July U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net-gains include: 1. Stocks by-yield (87); 2. Stocks by price-upside (30); 3. Closed-End-Investments, Exchange-Traded-Funds & Notes (CEICs/ETFs/ETNs) by-yield >8.74% (80). Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs.Equities; 4. Fund risks/rewards. All per prices as of 7/13/23.

87 Monthly Paying Dividend Stocks And 80 Funds For July

The iShares Investment Grade Corporate Bond Buywrite Strategy ETF is a new exchange-traded fund that offers a unique approach to investing in the fixed income market. The fund invests in an investment-grade corporate bond ETF and then writes covered calls on the name. This strategy allows LQDW to generate income from the option premium. One of the key risks associated with LQDW is that its performance could be hurt by a significant rally in corporate bond prices on the back of lower rates.

LQDW: Appreciated Addition To The Buy-Write Arena, Sell On Lower Rates

The iShares Investment Grade Corporate Bond BuyWrite Strategy (LQDW) invests based on the Cboe LQD BuyWrite Index. The strategy is to hold shares in the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and write one-month forward call options against up to 100% of that position.

LQDW: A Covered Call Strategy Based On Popular Bond Index

LQDW tracks an index of investment-grade corporate bonds while writing call options to generate extra income. Bonds have been volatile and under pressure but look increasingly attractive as interest rates normalize.

LQDW: Covered Call Bond ETF Offers A Massive Yield While Limiting Volatility

On August 22, BlackRock Inc (NYSE: BLK) unveiled three new fixed income exchange traded funds, offering investors a BuyWrite strategy on fixed income assets.

BlackRock Announces 3 New BuyWrite Fixed Income ETFs For The Savvy Investor

NEW YORK--(BUSINESS WIRE)--BlackRock today launched a first-of-its-kind suite of fixed income ETFs that provide access to buy-write investment strategies on baskets of fixed income securities: the iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (Cboe: TLTW), iShares High Yield Corporate Bond BuyWrite Strategy ETF (Cboe: HYGW) and the iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (Cboe: LQDW). Each ETF packages two potential income sources into one ticker – premiums generate

BlackRock Launches Industry's First BuyWrite Fixed Income ETFs

News for Ishares Investment Grade Corporate Bond Buywrite Strategy ETF ETF (LQDW)