VGIT vs. IEI: How a Maturity Gap Shifts Cost, Yield and Rate Risk

Overview

• A new Yahoo Finance comparison explains how these two intermediate U.S. Treasury ETFs diverge on maturity range, fees, yield, and sensitivity to interest rates.
• VGIT holds Treasuries maturing in roughly 3 to 10 years and is more sensitive to rate moves than IEI, which sticks to 3 to 7 years.
• VGIT charges a 0.03% expense ratio and manages about $48.5 billion, compared with IEI at 0.15% and about $18.8 billion.
• Recent results show VGIT with a 4.6% one-year return and a 3.8% yield versus 4.2% and 3.6% for IEI.
• The choice depends on portfolio role, with IEI serving as a steadier intermediate anchor and VGIT offering more upside if rates fall but deeper losses if they rise.