Okay, let’s talk bonds. Not exactly a topic that screams “Saturday night,” I grant you. But if you’re the type who does get excited about fixed income, or, you know, just want to understand where your money is going, we’re comparing two ETFs today: the iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) and the Fidelity Investment Grade Bond ETF (NYSEMKT:FIGB). Think of it as a financial showdown, but with less dramatic music and more… spreadsheets.
IEI is basically the pure-play Treasury bond guy – very focused, very government-approved. FIGB, on the other hand, is like the overachiever who diversified into everything – corporate bonds, securitized bonds, you name it. It’s trying to impress everyone. Let’s break down the cost, performance, and what exactly is lurking inside these things.
The Bottom Line (and the Fees)
| Metric | IEI | FIGB |
|---|---|---|
| Issuer | iShares | Fidelity |
| Expense Ratio | 0.15% | 0.36% |
| 1-yr Return (as of Feb. 9, 2026) | 6.7% | 6.8% |
| Dividend Yield | 3.5% | 4.1% |
| Beta | 0.71 | 1.01 |
| AUM | $17.9 billion | $327 million |
So, IEI is cheaper. Like, noticeably cheaper. It’s the Costco of bond ETFs. FIGB is trying to be Whole Foods – a little more expensive, a little more… curated. FIGB does offer a slightly higher dividend yield, but honestly, the difference is small enough that you’re probably better off using that extra money to buy a really nice avocado. (Don’t judge me.) Also, IEI has a lot more assets under management, which means it’s easier to get in and out without messing with the price. Liquidity is good, people. Good for everyone.
Performance & Risk: Who’s the Steady Eddie?
| Metric | IEI | FIGB |
|---|---|---|
| Max Drawdown (4 yr) | (10.9%) | (15.6%) |
| Growth of $1,000 over 4 years | $1,057 | $1,038 |
What’s Inside the Black Box?
FIGB is the “everything but the kitchen sink” type. As of January 30, 2026, it held 653 different bonds. That’s… a lot. Almost half are government bonds, but it also dips into corporate and securitized bonds. It’s like the financial equivalent of a sampler platter. IEI, meanwhile, is a minimalist. It only holds U.S. Treasury securities. 85 of them, to be exact. It’s the Marie Kondo of bond ETFs – if it doesn’t spark joy (or, you know, guarantee government backing), it’s out. Neither fund is messing around with leverage or anything fancy. Both are keeping it relatively simple.
For more ETF guidance, check out this link. (I’m contractually obligated to say that.)
So, Which One Wins?
Look, both IEI and FIGB are perfectly decent bond funds. But in 2026, with interest rates potentially heading down, a pure Treasury play like IEI feels… sensible. It’s the financial equivalent of wearing sensible shoes. FIGB’s higher yield is tempting, but it’s partially offset by those higher fees. And over the last four years, IEI has delivered a better return with less volatility. That’s a win in my book.
If you’re looking for reliable, safe income, especially with the possibility of more rate cuts, IEI is the way to go. It’s the best combination of yield, stability, and low cost. FIGB might make sense if you’re really chasing that extra yield, but honestly, you’re probably better off investing the difference in something fun. Like a really good avocado. Or a weekend getaway. Just saying.
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2026-02-10 18:34