Vanguard’s Intermediate-Term Treasury ETF offers a 0.12 percentage point lower expense ratio and higher yield than its iShares rival.
Vanguard’s Intermediate-Term Treasury ETF (NASDAQ:VGIT) surpasses the iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) in cost efficiency and yield. VGIT charges a 0.03% expense ratio, 0.12 percentage points below IEI’s, while delivering a 3.90% trailing-12-month distribution yield versus IEI’s 3.60%.
Both funds provide exposure to U.S. Treasuries, but VGIT targets a slightly longer maturity profile, extending to 10 years, compared to IEI’s three- to seven-year window. IEI holds 82 Treasury securities, including notes maturing between 2030 and 2031, while VGIT’s broader duration aims to balance yield and interest rate risk.
Investors often favor intermediate Treasuries for their blend of higher returns than cash and lower volatility than long-term bonds. The cost and yield advantages may influence allocation decisions in fixed-income portfolios.