iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (BATS:LQDW) Trading 1.5% Higher – Is It Still a Buy?

On January 22, 2025, the iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (BATS:LQDW) experienced a 1.5% increase during mid-day trading. The shares reached an intraday high of $26.41 before closing at $26.50. During the trading session, approximately 17,820 shares changed hands, compared to the prior closing price of $26.09.

Performance Overview of LQDW

The stock has shown consistent movement with a 50-day moving average at $26.75 and a 200-day moving average at $27.62. These averages provide a reference point for evaluating the stock's performance over short and long-term periods.

Dividend Announcement

In related news, the fund recently declared a dividend of $0.2262 per share. This dividend was paid out on November 7, with the record date being November 4. The ex-dividend date fell on the same date, which means that investors needed to hold shares before this date to qualify for the dividend.

Institutional Activity

Institutional interest in the iShares Investment Grade Corporate Bond BuyWrite Strategy ETF has been evident. Recently, Prime Capital Investment Advisors LLC increased its holdings in LQDW by 14.7% during the third quarter, according to its latest disclosure with the SEC. At that time, the fund owned 258,242 shares of the ETF, valued at $7,334,000.

About the iShares Investment Grade Corporate Bond BuyWrite Strategy ETF

The iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (LQDW) aims to track the CBOE LQD BuyWrite index. This ETF utilizes a fund-of-funds strategy to passively follow the performance of the iShares iBoxx USD Investment Grade Corporate Bond ETF, combined with writing one-month call options against the holdings of the fund.

Conclusion

As LQDW trades slightly higher and adjustments in dividends are made, investors are questioning whether the ETF is still a buy option. With strong institutional backing and a systematic structure, potential investors might find LQDW an appealing choice for their portfolios.

iShares, LQDW, ETF