And to anwer your question - ask yourself how much lower interest rates could fall and the spread between treasuries narrow. In both cases the answer is not very much. And if there is a recession, while treasuries will probably help this fund (unless the Fed does something stupid to tank the US$ which could be inflationy), the spread vs treasuries could widen out alot.
Risk/reward at this level just isn't here. At best, you'll be lucky for lqd to remain stable or go up slightly and at the worst, drop significantly. Risk/reward just isn't here.
If you had to ask that question you don't belong in this etf. Frankly I don't understand why anyone at this point would accept less than a 4.5% return for so much risk.
Why don't you buy at&t or mo or rai or pm or many utility stocks instead? All pay a higher yield and you have less interest rate and corporate risk - and over the long haul have far more capital appreciation potential than you ever could have with lqd.