VGIT vs. IGIB: Which Bond ETF Offers the Better Buy for Income Investors?
VGIT offers lower volatility and lower fees, while IGIB delivers higher yields and has stronger recent returns. Which fits your portfolio?
Overview
The Vanguard Intermediate-Term Treasury ETF (NASDAQ:VGIT) and the iShares 5-10 Year Investment Grade Corporate Bond ETF (NASDAQ:IGIB) differ in their underlying credit risk and yield potential -- one holds government-backed debt, while the other focuses on investment-grade corporate bonds.
Both funds target the middle of the yield curve to balance income and interest rate risk. But whereas VGIT prioritizes the safety and liquidity of government obligations for more conservative portfolios, IGIB tracks corporate debt, which offers higher yields.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.