These bond funds shield you from interest-rate shocks — but here’s the catch
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 09 2025
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Source: MarketWatch
Interest Rate Hedging: Investors are considering whether to pay a fee of up to 1% of their annual bond-fund return for protection against rising U.S. interest rates through rate-hedged bond funds.
Mechanism of Rate-Hedged Funds: These funds combine traditional bonds with derivatives to hedge against interest-rate changes, aiming to maintain returns close to the initial yield minus hedging costs.
Analyst Views on LQD
Wall Street analysts forecast LQD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LQD is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 110.560
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
