IGIB offers broader bond exposure and higher yield than IEI, while IEI provides lower volatility

Two iShares bond ETFs—IGIB and IEI—offer different exposures for investors weighing cost, income, and risk. IGIB, the iShares 5-10 Year Investment Grade Corporate Bond ETF (expense ratio 0.17%), emphasizes intermediate-term corporate credit and has a higher dividend yield. IEI, the iShares 3-7 Year Treasury Bond ETF (expense ratio 0.08%), focuses on U.S. Treasuries and is positioned as a more conservative, lower-volatility option.

Cost and income snapshot

The funds differ notably on fees and income metrics. Based on the provided snapshot (as of 2026-04-10 for the 1-year return):

• Expense ratio: IGIB 0.04% vs IEI 0.15%
• 1-year return (total return): IGIB 9.12% vs IEI 4.41%
• Dividend yield: IGIB 4.7% vs IEI 3.6%
• AUM: IGIB $17.7 billion vs IEI $18.8 billion

Portfolio construction: corporate credit vs Treasury-only

IEI: concentrated Treasuries

IEI holds a concentrated portfolio of 83 U.S. Treasury bonds with maturities between three and seven years. The fund is described as a pure-play on government debt, with the largest positions in Treasury notes maturing in 2029, 2030, and 2031. The fund has existed for over nineteen years.

IGIB: broad investment-grade corporate exposure

IGIB invests in nearly 3,000 investment-grade corporate bonds, providing exposure to major U.S. companies and financial institutions. The largest corporate bond holdings each make up less than 0.25% of the overall fund, and the fund’s corporate tilt is intended to increase yield while adding credit risk.

Performance and drawdown over five years

Over the past five years, the comparison provided emphasizes differences in drawdown and cumulative growth:

• Max drawdown (5 years): IGIB (20.62%) vs IEI (13.88%)
• Growth of $1,000 over 5 years: IGIB $1,086 vs IEI $1,025

What the differences mean for investors

Diversification and issuer risk. IGIB provides diversification across bond issuers. The largest bond issue is about 0.25% of the portfolio, and the top issuer, JPMorgan Chase (JPM), accounts for 2.3% of the overall portfolio.

Concentration and rate exposure. IEI does not provide issuer diversification because it is entirely invested in U.S. Treasuries expiring between 2029 and 2033.

Return trade-offs and market behavior

The provided data suggests that investors seeking stability from government-backed Treasuries may not have given up much in returns relative to the corporate alternative. Over five years, IGIB produced a total return of 8.37%, which is described as not exceptional.

In addition, the funds are characterized as behaving differently versus equities: IEI is described as tending to move independently of the stock market, while IGIB—due to its corporate debt exposure—is described as somewhat more likely to follow broader stock market trends.