iShares 3-7 Year Treasury Bond ETF (IEI 0.03%) provides low-cost exposure to intermediate Treasuries, while Fidelity Investment Grade Bond ETF (FIGB +0.11%) offers a broader, higher-yielding mix of investment-grade debt.
Investors seeking stability often look to fixed income, yet they must choose between the safety of government debt and the higher potential income of investment-grade corporate bonds. The iShares 3-7 Year Treasury Bond ETF focuses strictly on intermediate U.S. Treasuries, while the Fidelity Investment Grade Bond ETF acts as a core bond solution, diversifying across various high-grade sectors.
Snapshot (cost & size)
| Metric | IEI | FIGB |
|---|---|---|
| Issuer | iShares | Fidelity |
| Expense ratio | 0.15% | 0.36% |
| 1-yr return (as of May 18, 2026) | 3.20% | 4.20% |
| Dividend yield | 3.60% | 4.20% |
| Beta | 0.14 | 0.26 |
| AUM | $18.4 billion | $0.5 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares fund is the more affordable option with an expense ratio of 0.15%, compared to 0.36% for the Fidelity fund. However, income seekers may find the Fidelity fund more attractive, as it offers a higher dividend yield of 4.20% compared to the Treasury-focused fund’s 3.60%.
Performance & risk comparison
| Metric | IEI | FIGB |
|---|---|---|
| Max drawdown (5 yr) | (13.90%) | (18.10%) |
| Growth of $1,000 over 5 years (total return) | $1,012 | $1,012 |
What's inside
The Fidelity Investment Grade Bond ETF (FIGB) manages a diverse portfolio of 180 holdings, focusing on high-grade bonds across several sectors to provide core fixed-income exposure. Launched in 2021, the fund has a trailing-12-month dividend of $1.77 per share. Its portfolio is currently 100% cash and other assets, reflecting its liquid, investment-grade nature, and it manages ~$464.9 million in assets under management (AUM).
In contrast, the iShares 3-7 Year Treasury Bond ETF (IEI) was launched in 2007 and holds 83 U.S. Treasury issues with intermediate maturities. This fixed-income fund focuses entirely on government debt and has a trailing-12-month dividend of $4.26 per share. Its sector breakdown shows no equity exposure, and it manages $18.4 billion in AUM.
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Which looks like the better buy
The iShares 3-7 Year Treasury Bond ETF (IEI) and the Fidelity Investment Grade Bond ETF (FIGB) are both fixed-income exchange-traded funds (ETFs). Here is how they compare to one another.
First, there’s IEI. This fund holds U.S. Treasury debt, specifically, it focuses on bonds with three to seven years to maturity. This way, it aims to provide a higher yield than funds that focus on shorter maturity U.S. Treasury debt. The fund currently has a dividend yield of about 3.6% and an expense ratio of 0.15%, which is quite affordable.
Then, there’s FIGB. Unlike IEI, FIGB holds investment-grade bonds, not just U.S. Treasury debt. As a result, FIGB offers a slightly higher dividend yield of 4.2%. The fund has a higher expense ratio of 0.36%. One potential drawback for FIGB is its overall size. The fund has less than $500 million in AUM, making it much smaller than IEI, which has over $18 billion in AUM.
To sum up, income-seeking investors should consider both of these funds. IEI is better suited to investors seeking a fund focused squarely on the U.S. Treasury debt market, with a low expense ratio and ample liquidity, thanks to its large AUM. FIGB, on the other hand, may appeal to fixed-income investors aiming for a broader slice of the debt market. Furthermore, its higher dividend yield may appeal to those seeking higher income from their investment.
