How Does BlackRock's IGIB Bond ETF Compare to Vanguard's?
The Motley Fool
by newsfeedback@fool.com (Adé Hennis)February 15, 2026
AI-Generated Deep Dive Summary
BlackRock's iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) and Vanguard's Total Bond Market ETF (BND) are two popular choices for investors seeking exposure to U.S. bonds, but they differ in key aspects such as cost, yield, performance, and risk profiles. While both ETFs offer high dividend yields, their underlying strategies and holdings set them apart. IGIB focuses on investment-grade corporate bonds with maturities between 5 and 10 years, making it more sensitive to interest rate changes compared to BND, which provides broader exposure across the U.S. bond market.
The cost of these ETFs is another critical factor. IGIB has a higher expense ratio than BND, which could impact long-term returns. However, IGIB also offers a slightly lower dividend yield due to its focus on shorter-duration bonds, which may appeal to investors seeking stability and income. On the other hand, BND's broader market exposure provides a more diversified portfolio, potentially offering greater stability and longer-term growth.
When it comes to performance, both ETFs have shown strong returns over time, but their beta levels indicate different risk profiles. IGIB tends to be more volatile due to its concentration in shorter-maturity bonds, which can amplify gains or losses during market fluctuations. BND, with its broader holdings, generally exhibits lower volatility and may appeal to risk-averse investors seeking steady returns.
Understanding these differences is crucial for investors looking to build a diversified portfolio. IGIB might be better suited for those willing to take on more risk for potentially higher rewards, while BND could be the choice for investors prioritizing stability and broad
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Originally published on The Motley Fool on 2/15/2026