New Bond ETF Comparisons Underscore Tiny Fees and a Yield‑Versus‑Safety Trade-Off
Investors choose between higher income from corporate exposure versus lower volatility in Treasury-only funds.
Overview
- Fresh comparisons show most large bond ETFs charge 0.03%–0.06% in fees, with Fidelity’s FIGB at 0.36% as a clear outlier.
- Vanguard BND versus VGIT: both charge 0.03%, yet BND’s far larger scale and broader bond mix deliver a slight edge in yield and one‑year return as VGIT’s Treasuries keep swings lower.
- iShares IGIB versus Fidelity FIGB: IGIB’s 0.04% fee, 4.7% dividend yield, and nearly 3,000 bonds contrast with FIGB’s higher cost, smaller asset base, and a more cash‑ and Treasury‑heavy portfolio.
- iShares IGIB versus IEI: IGIB pays more and costs less, while IEI’s Treasury‑only approach reduces credit risk and has had smaller peak‑to‑trough losses over the past five years.
- Vanguard BSV versus iShares ISTB: BSV is cheaper and far larger, ISTB shows a slightly higher yield and one‑year gain, and both funds’ five‑year results rely mostly on income with little price growth.