Both the iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB 0.51%) and the Vanguard Total Bond Market ETF (BND 0.28%) are popular choices for investors seeking core U.S. bond exposure, but their portfolios and risk profiles differ. This comparison looks at cost, yield, performance, risk, and underlying holdings to help clarify where each may fit in a diversified portfolio.
Snapshot (cost & size)
| Metric | IGIB | BND |
|---|---|---|
| Issuer | IShares | Vanguard |
| Expense ratio | 0.04% | 0.03% |
| One-year return (as of Feb. 14, 2026) | 5.55% | 4.19% |
| Dividend yield | 4.57% | 3.83% |
| Beta | 0.35 | 0.27 |
| Assets under management (AUM) | $18.11 billion | $389.22 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The one-year return represents total return over the trailing twelve months.
BND is slightly more affordable with a lower expense ratio, while IGIB offers a higher yield, which may appeal to investors prioritizing income over cost minimization.
Performance & risk comparison
| Metric | IGIB | BND |
|---|---|---|
| Max drawdown (five years) | -20.61% | -17.91% |
| Growth of $1,000 over five years | $881 | $853 |
What's inside
For nearly 20 years, IGIB has focused on investment-grade corporate debt with maturities of 5 to 10 years. Holding 2,979 assets, its largest positions are in bonds issued by top companies such as Goldman Sachs (GS 4.44%) and Bank of America (BAC 3.24%) . It primarily holds A- and BBB-rated bonds, with each class carrying at least 45% weight.
For nearly 20 years, BND has tracked the broad U.S. investment-grade bond market, holding a large basket of 15,000 securities. It is designed for investors seeking balanced exposure across Treasuries, mortgage-backed securities, and investment-grade corporates.
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What this means for investors
When choosing between these two ETFs, it will come down to volatility preference, as both ETFs have similar one-year returns and have fallen around 12% within the last five years. Corporate bonds are typically more vulnerable to default and volatility than U.S. government bonds.
Even though BND invests in corporate bonds, it’s very limited, and half of its holdings are U.S. government bonds. The Vanguard ETF also has at least 72% of its weight dedicated to AAA-rated bonds, the highest-rated bonds that have nearly zero chance of defaulting.
U.S. government bonds are less risky than corporate bonds but typically offer slower returns. And because BND allocates more weight to higher-rated bonds, that risk can be even safer, since bonds in higher classes have a lower chance of default. IGIB holds less than one percent in AAA-rated bonds.
Regardless of which ETF investors may want to go with, it should be noted that bond-related ETFs are often some of the slowest-growing in terms of price, compared to traditional stock-holding funds. But the high dividend yields can make investing in these types of funds worth it.
