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Union Savings Bank invests in iShares iBoxx Investment Grade Corporate Bond ETF

EditorAmbhini Aishwarya
Published 08/12/2023, 12:18 am
© Reuters.

WASHINGTON - Recent filings with the Securities & Exchange Commission have highlighted a series of investments by various financial institutions into the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEARCA:LQD), reflecting a growing interest in this exchange-traded fund (ETF) that aims to track the performance of the Markit iBoxx USD Liquid Investment Grade Index.

On Wednesday, LQD experienced a notable uptick in market activity. The ETF saw its shares rise by $0.52 to close at $108.05, albeit with nearly half the average traded volume, reporting 11,818,416 shares compared to the typical 21 million-plus. Additionally, there was a surge in options trading activity involving LQD, with an acquisition of 66,845 put options observed – a significant increase from the usual daily volume of 40,702.

The recent investment moves include Union Savings Bank's new stake in LQD, acquiring 654 shares totaling about $71,000. In the second quarter, EverSource Wealth Advisors LLC and SouthState Corp made their entries into LQD with investments valued at approximately $39,000 and $65,000, respectively. Cary Street Partners Investment Advisory LLC significantly raised its stake in LQD by purchasing an additional 478 shares for an accumulated value of around $80,000.

Earlier in the first quarter, Hanseatic Management Services Inc. boosted its holdings in LQD by adding another 215 shares to reach a valuation of approximately $32,000. Fortis (NYSE:FTS) Advisors LLC also expanded its share count to achieve a valuation close to $56,000.

Institutional ownership of LQD remains strong with VitalStone Financial LLC entering into positions valued at about $1.26 million during an unspecified date in the third quarter. Essex Financial Services Inc., Integrated Wealth Concepts LLC, and other institutional players such as iA Global Asset Management Inc., which now holds over $55 million in assets, and Ameriprise Financial Inc (NYSE:AMP)., with holdings exceeding $651 million in LQD stocks were also active buyers. Overall institutional ownership stands robustly at over 92%.

The year-long trading range for LQD has spanned from lows near $98.24 to highs around $112.51 per share. Trading at about $107.53 on Wednesday, the ETF continues to be a significant component of many investment portfolios given its focus on liquid investment-grade U.S. corporate bonds.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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