Which iShares Bond ETF Is the Better Buy: Treasury-Focused IEI or Corporate IGIB?
Corporate bonds carry greater volatility, with a higher maximum drawdown over five years than Treasuries.
Overview
Investors choosing between iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) and iShares 5-10 Year Investment Grade Corporate Bond ETF (NASDAQ:IGIB) must decide between the safety of U.S. government backing and the higher yields offered by mid-term corporate debt.
Fixed-income investors often look to bond ETFs to provide stability or income. While both of these iShares funds target the intermediate-term portion of the yield curve, they focus on different segments of the debt market. This analysis compares a Treasury-only approach with an investment-grade corporate credit strategy.
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-yr 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.