Fidelity’s Investment Grade Bond ETF offers higher income but carries a steeper expense ratio than iShares’ Treasury-focused fund.
Fidelity Investment Grade Bond ETF (FIGB) delivers a 4.20% dividend yield, surpassing the iShares 3-7 Year Treasury Bond ETF’s (IEI) 3.60%. The trade-off comes in costs, with FIGB charging a 0.36% expense ratio versus IEI’s 0.15%.
FIGB, launched in 2021, holds 180 investment-grade bonds across sectors, managing $464.9 million in assets. IEI, established in 2007, focuses solely on intermediate U.S. Treasuries with 83 holdings. Both cater to stability-seeking investors but differ in risk and income potential.
Investors face a choice: lower fees and government-backed safety with IEI or higher yield and diversification with FIGB.