IGIB offers a 1% higher dividend yield than VGIT, trading slightly higher risk for income-focused investors.
The iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) delivers a trailing-12-month dividend yield 1 percentage point above the Vanguard Intermediate-Term Treasury ETF (VGIT). IGIB’s 0.04% expense ratio is marginally higher than VGIT’s 0.03%, but its corporate bond focus drives the yield premium.
VGIT holds U.S. Treasury bonds with maturities of three to 10 years, prioritizing safety and liquidity. IGIB targets investment-grade corporate debt, exposing investors to credit risk but offering higher income potential. Both funds aim to balance yield and interest rate sensitivity.
Performance metrics show IGIB’s yield advantage comes with modestly elevated volatility, though neither fund’s beta suggests extreme price swings relative to the S&P 500.