iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) offers a lower-risk profile through U.S. government debt, while iShares 5-10 Year Investment Grade Corporate Bond ETF (NASDAQ:IGIB) provides higher yield at a lower cost.
Investors looking to balance their portfolios often turn to intermediate-term bonds for a mix of income and stability
This comparison explores whether the safety of government-backed debt in IEI justifies its higher expense ratio compared to the diversified corporate credit exposure found in IGIB. Snapshot (cost & size) The iShares corporate bond fund is more affordable with an expense ratio of 0.04%, while the iShares Treasury fund charges 0.15%. Additionally, IGIB provides a higher payout, with a dividend yield 1.17 percentage points above its peer.
Performance & risk comparison What’s inside The iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) is a fixed-income fund that holds 82 U.S. government securities. Launched in 2007, it has paid $4.26 per share over the trailing 12 months. Conversely, the iShares 5-10 Year Investment Grade Corporate Bond ETF (NASDAQ:IGIB) is a broader fixed-income fund with 2,963 holdings.