Bonds & Boredom: A VGIT vs. IGIB Lament

My Aunt Millie called last week, convinced she’d discovered the secret to beating inflation. It involved rare coins and a man named Earl who, she assured me, “had a feeling.” I tried to steer her towards ETFs, specifically these two – the Vanguard Intermediate-Term Treasury ETF (VGIT) and the iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) – but she just kept talking about Earl’s “aura.” It’s exhausting, this constant battle against financial folklore. Anyway, these funds. They’re less about auras and more about, well, bonds. And honestly, even that feels a bit dramatic.

Both VGIT and IGIB deal in intermediate-term bonds, which sounds…substantial. Like something you’d need a small crane to move. But it’s just debt. People lending money. The difference, and it’s a crucial one, is who is borrowing. VGIT sticks with the U.S. Treasury, which is about as safe as it gets. It’s like lending money to a very large, slightly grumpy uncle who always pays you back, eventually. IGIB, on the other hand, dabbles in corporate bonds. Companies. Which, let’s be honest, are considerably more likely to go bankrupt and leave you with nothing but a strongly worded letter.

The Numbers (Because We Have To)

Metric	VGIT	IGIB
Issuer	Vanguard	iShares
Expense Ratio	0.03%	0.04%
1-yr Return (as of 2026-01-22)	3.0%	4.6%
Dividend Yield	3.8%	4.6%
AUM	$44.6 billion	$17.6 billion

The numbers, as they do, tell a story. IGIB offers a slightly higher yield, which is tempting. It’s like the difference between a sensible beige cardigan and a sequined jacket. The jacket is more exciting, but you’ll probably regret wearing it to the grocery store. VGIT is the cardigan. Reliable, predictable, and likely to blend in with the wallpaper. And with $44.6 billion in assets, it’s a very large cardigan.

Risk & Reward (Or the Lack Thereof)

Metric	VGIT	IGIB
Max Drawdown (5 yr)	(15.13%)	(20.64%)
Growth of $1,000 over 5 years	$863	$878

Over five years, IGIB edged out VGIT in terms of growth. But it also took a bigger tumble along the way. It’s the difference between a thrilling rollercoaster and a gently sloping hill. One offers a momentary rush, the other a more…consistent experience. I’m starting to suspect my aunt Millie prefers the rollercoaster. She always has.

Inside the Bond Machine

IGIB holds nearly 3,000 corporate bonds. 3,000! That’s a lot of companies hoping you won’t notice their shaky balance sheets. It’s a diverse portfolio, certainly, but also a bit…anxious-making. VGIT, on the other hand, sticks to U.S. Treasuries. It’s the financial equivalent of a minimalist lifestyle. Fewer possessions, less stress.

What Does It All Mean?

Treasury bonds are backed by the full faith and credit of the U.S. government. It’s a reassuring phrase, isn’t it? It implies a level of stability that is increasingly rare these days. Corporate bonds, well, they’re backed by…hope. And a decent credit rating. And the assumption that the company won’t be disrupted by a rogue TikTok influencer.

If you prioritize safety and stability, if you want to sleep soundly at night, VGIT is the way to go. It’s the financial equivalent of a weighted blanket. If you’re willing to take on a little more risk for a potentially higher return, IGIB might be worth considering. Just don’t blame me when that rogue TikTok influencer bankrupts the company. And for goodness sake, steer clear of Earl. My aunt is still sending me pictures of his coin collection.

2026-01-25 20:43

The Numbers (Because We Have To)

Risk & Reward (Or the Lack Thereof)

Inside the Bond Machine

What Does It All Mean?

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