(LQDI) iShares Inflation Hedged - Ratings and Ratios

The iShares Inflation Hedged Corporate Bond ETF (LQDI) is designed to shield investors from inflation by investing at least 80% of its net assets in securities that are part of its underlying index, which tracks the performance of inflation-linked corporate bonds.

By focusing on inflation-hedged corporate bonds, LQDI aims to provide a safeguard against rising inflation, which can erode the purchasing power of fixed-income investments. The ETFs underlying index likely comprises corporate bonds with inflation-adjusted coupon payments or principal, thereby offering a hedge against inflation.

Analyzing the ETFs recent price action, we observe a steady upward trend, with the last price at $25.84, above its 20-day, 50-day, and 200-day simple moving averages (SMA) of $25.63, $25.61, and $25.59, respectively. The Average True Range (ATR) of 0.31, equivalent to 1.21%, indicates moderate volatility. Given the current price is near the 52-week high of $26.10, we can anticipate potential resistance at this level.

With Assets Under Management (AUM) of $89.94 million, LQDI has a relatively modest size compared to other ETFs in the corporate bond category. However, its liquidity appears sufficient to support trading.

Forecasting LQDIs future performance, we can combine technical and fundamental insights. The ETFs inflation-hedging strategy is likely to attract investors in a rising inflation environment. Technically, the upward trend is intact, and a break above the 52-week high could lead to further gains. Conversely, a decline below the 50-day SMA may signal a reversal. Assuming a continued upward trend and moderate inflation concerns, we forecast LQDI to reach $26.50 in the near term, representing a 2.5% increase from the current price.