iShares 3-7 Year Treasury Bond ETF (IEI 0.38%) offers a lower-risk profile through U.S. government debt, while iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB 0.57%) provides higher yield at a lower cost.
Investors looking to balance their portfolios often turn to intermediate-term bonds for a mix of income and stability. This comparison explores whether the safety of government-backed debt in IEI justifies its higher expense ratio compared to the diversified corporate credit exposure found in IGIB.
Snapshot (cost & size)
| Metric | IGIB | IEI |
|---|---|---|
| Issuer | iShares | iShares |
| Expense ratio | 0.04% | 0.15% |
| 1-yr return (as of June 3, 2026) | 6.30% | 3.30% |
| Dividend yield | 4.80% | 3.60% |
| Beta | 0.33 | 0.14 |
| AUM | $18.1 billion | $18.4 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 corporate bond fund is more affordable with an expense ratio of 0.04%, while the iShares Treasury fund charges 0.15%. Additionally, IGIB provides a higher payout, with a dividend yield 1.17 percentage points above its peer.
Performance & risk comparison
| Metric | IGIB | IEI |
|---|---|---|
| Max drawdown (5 yr) | (20.60%) | (13.90%) |
| Growth of $1,000 over 5 years (total return) | $1,070 | $1,012 |
iShares Trust – iShares 3-7 Year Treasury Bond ETF
Today’s Change
(-0.38%) $-0.45
Current Price
$116.73
Key Data Points
Day’s Range
$116.67 – $116.84
52wk Range
$116.51 – $120.78
Volume
1.9M
What’s inside
The iShares 3-7 Year Treasury Bond ETF (IEI 0.38%) is a fixed-income fund that holds 82 U.S. government securities. Launched in 2007, it has paid $4.26 per share over the trailing 12 months.
Conversely, the iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB 0.57%) is a broader fixed-income fund with 2,963 holdings. It is highly diversified, and no single position exceeds 0.23% of the portfolio. Also launched in 2007, this fund has a trailing-12-month dividend of $2.55 per share. While IEI focuses on government safety, IGIB targets investment-grade corporate bonds with slightly longer average maturities.
For more guidance on ETF investing, check out the full guide at this link.
iShares Trust – iShares 5-10 Year Investment Grade Corporate Bond ETF
Today’s Change
(-0.57%) $-0.30
Current Price
$52.69
Key Data Points
Day’s Range
$52.67 – $52.83
52wk Range
$52.09 – $54.58
Volume
2.6M
What this means for investors
Bond markets posted strong returns in 2025 before hitting turbulence in early 2026, as economic crosswinds pushed yields higher and prices lower. That volatility has made the choice between government and corporate bonds more consequential than it has been in years.
The core question these two funds ask is pretty simple: How much do you trust the economy right now? IEI holds only U.S. Treasuries, bonds that carry no credit risk and tend to hold up when economic fears rise. That independence from corporate health is exactly what makes Treasuries valuable in uncertain times.
Corporate bond credit spreads remain near all-time lows, meaning investors are receiving very little extra compensation for taking on corporate credit risk. IGIB yields more than IEI and costs significantly less, but that advantage could narrow quickly if economic conditions deteriorate and corporate bonds reprice lower relative to government debt.
For investors whose primary goal is income from high-quality bonds at the lowest possible cost, IGIB currently makes a strong practical case. For those who want bonds to act as genuine insurance against stock market stress, IEI’s Treasury-only mandate is worth the higher fee.