LQDD MicroSectors -3x Short Investment Grade Corporate Bond (LQD) ETNs
Aims to return three times the opposite of the daily move of investment-grade bonds (LQD)
One month to Sep 11, 2026: LQDD returned +4.1% where its own daily promise gave +3.8%, 0.4 points over.
Key facts
What it aimed at, and what it did
Over the window to Sep 11, 2026, LQD moved −1.3%. LQDD returned +4.1%, where 3 times that move implies +3.8%. The difference is +0.3 pts.
Period by period
| Window | Fund | LQD | -3x the move | Difference | LQD moved about |
|---|---|---|---|---|---|
| 1 month | +4.1% | −1.3% | +3.8% | +0.3 pts | 6% |
| Since launch | +3.8% | −1.2% | +3.5% | +0.3 pts | 6% |
In plain words
Read the multiple against the whole window instead and −3 times LQD's −1.3% implies +3.8%, which makes LQDD look 0.3 points over. 0.1 of that is daily compounding, which happens to any −3 times fund over the same path, and the rest is the fund. LQDD aims to return -3 times LQD's move each day, then resets. Over one day it does that. Over longer, the daily results compound, so the total is not -3 times the period's move: in a market that falls and comes back it is reliably less, and in a steady run it can be more. LQD moved at 6% annualized over that window. That is what decides how far the two figures separate: the same fund on a calm underlying and a violent one is a different product.
| Sets out to return | -3 times the daily move of LQD, reset daily |
|---|---|
| Multiple a holder actually got over the window (ETFIQ) | LQD moved −1.3% over this window, too little to read a multiple from |
| Underlying | LQD |
| Segment | sector or country, index |
| Expense ratio | not read by ETFIQ |
| Launched | Aug 11, 2026 |
| Underlying volatility over the window (ETFIQ) | 6% annualized |
Returns are ETFIQ calculations from Tiingo end-of-day prices, distributions reinvested, measured against the underlying over exactly the same days. How these figures are computed
Questions people ask
- Did LQDD return -3 times LQD?
- Over the window to Sep 11, 2026, LQD moved −1.3% and LQDD returned +4.1%. 3 times that move is +3.8%, so the fund came out 0.3 points ahead of it.
- Why does LQDD not return -3 times over a year?
- Because it resets daily. LQDD aims at -3 times each day's move, and daily results compound. Over a run where the underlying falls and comes back, compounding a levered daily return leaves a holder behind what -3 times the period move would suggest; over a steady run in one direction it can leave them ahead. The longer the holding, and the more the underlying moves about, the further apart the two figures get.
The words on this page
- Stated multiple
- What the fund sets out to return against its underlying, each day. A fund at 2x aims to return twice the underlying’s daily move, and an inverse fund at -2x aims to return twice it in the opposite direction.
- Daily reset
- The fund starts each day aiming at the multiple again, from wherever it now stands. It is the mechanism that makes these funds behave as they do, and the reason the stated multiple applies to a day rather than to a holding period.
- Compounding
- Daily results multiply together rather than adding up. Two days of the multiple is not twice the multiple, and over a run of days the difference between the two grows with how far the underlying moves about.
- Decay
- What compounding costs a holder when the underlying falls and rises back to where it started. The underlying is level and the fund is down; the more violently it moved, the further down.
- Difference against the stated multiple
- The fund’s return minus the stated multiple times the underlying’s return, in percentage points. The one figure that says whether a holder got what the fund’s own multiple describes.
Every term used here, defined in full on the leveraged ETFs vocabulary page.
Where these figures came from
ETFIQ links to the documents behind every figure. It is not affiliated with any issuer, and a link is not an endorsement.
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Where LQDD is written about
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Cite this page. ETFIQ, LQDD, leveraged ETFs, data as of Sep 11, 2026. https://etfiq.com/funds/LQDD Free to use with attribution; the underlying files are at Open data.