iShares Inflation Hedged Corporate Bond ETF Price & Performance (LQDI)

The iShares Inflation Hedged Corporate Bond ETF (LQDI) saw notable institutional interest in the fourth quarter, with firms like LPL Financial and Strategic Financial Concepts significantly increasing their holdings. Despite this, shares dipped 1.3% on Friday amid lighter-than-average trading volume, reflecting broader market caution toward inflation-hedged assets.12

Emerging market bond ETFs are outpacing U.S.-focused funds this year, buoyed by a softer dollar and attractive yields. Standouts include the Quadratic Interest Rate Volatility Hedge and SPDR Bloomberg International Corporate Bond ETFs. Currency ETFs have also benefited, highlighting a shift in investor appetite for global diversification.3

Ongoing economic uncertainty, inflation worries, and shifting central bank policies have stoked volatility in the bond market. Investors are gravitating toward diversified products like the iShares Core U.S. Aggregate Bond ETF, seeking stability and risk mitigation as they navigate fluctuating yields and unpredictable market sentiment.45