Key Factors
The iShares 5-10 Yr Funding Grade Company Bond ETF (NASDAQ:IGIB) stands out for its decrease price and better yield, whereas the iShares 3-7 Yr Treasury Bond ETF (NASDAQ:IEI) gives decrease volatility and a extra conservative Treasury-only strategy.
Each IGIB and IEI are fashionable bond ETFs from iShares, however they serve totally different roles. IGIB focuses on intermediate-term investment-grade company bonds, whereas IEI targets U.S. Treasuries with barely shorter maturities. This comparability highlights the important thing variations in price, danger, and portfolio building for buyers contemplating these two mounted earnings funds.
Snapshot (price & measurement)
| Metric | IGIB | IEI |
|---|---|---|
| Issuer | IShares | IShares |
| Expense ratio | 0.04% | 0.15% |
| 1-yr return (as of 2026-04-10) | 9.12% | 4.41% |
| Dividend yield | 4.7% | 3.6% |
| AUM | $17.7 billion | $18.8 billion |
The 1-yr return represents complete return over the trailing 12 months.
IEI comes with a notably increased expense ratio, costing almost 4 instances as a lot as IGIB. IGIB not solely appears extra reasonably priced, but it surely additionally delivers a better dividend yield, which can enchantment to income-focused buyers.
Efficiency & danger comparability
| Metric | IGIB | IEI |
|---|---|---|
| Max drawdown (5 y) | (20.62%) | (13.88%) |
| Development of $1,000 over 5 years | $1,086 | $1,025 |
What’s inside
IEI holds a concentrated portfolio of simply eighty-three U.S. Treasury bonds with maturities between three and 7 years, making it a pure-play on authorities debt. The fund has existed for over nineteen years, and its largest positions are Treasury notes maturing in 2029, 2030, and 2031. This simplicity may go well with buyers who need most credit score security and direct rate of interest publicity with out company danger.
IGIB, in contrast, invests in almost 3,000 investment-grade company bonds, providing broad publicity to main U.S. firms and monetary establishments. Its largest company bond holdings every make up lower than 1 / 4 of a p.c of the general fund. IGIB’s company tilt brings increased yield and credit score danger, but in addition better diversification throughout issuers.
For extra steerage on ETF investing, try the complete information at this hyperlink.
What it means for buyers
The iShares 5-10 Yr Funding Grade Company Bond ETF offers buyers loads of diversification amongst bond issuers. The most important bond situation it holds makes up about 0.25% of the portfolio. Plus, the highest issuer, JPMorgan Chase (NYSE:JPM) is chargeable for simply 2.3% of general portfolio.
The iShares 3-7 Yr Treasury Bond ETF doesn’t supply buyers any diversification. It’s fully invested in U.S. Treasureies that expire between 2029 and 2033.
Buyers in search of stability that comes with treasuries backed by the federal government haven’t given up a lot in the case of returns offered by these two ETF. Over the previous 5 years the iShares 5-10 Yr Funding Grade Company Bond ETF produced a complete return of simply 8.37%, which isn’t something to put in writing residence about.
Along with stability that comes with Treasuries, the IEI tends to maneuver independently of the inventory market. With publicity to company debt, the IGIB is a bit more more likely to observe the general inventory market.
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JPMorgan Chase is an promoting accomplice of Motley Idiot Cash. Cory Renauer has no place in any of the shares talked about. The Motley Idiot has positions in and recommends JPMorgan Chase. The Motley Idiot has a disclosure coverage.
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