People buy bonds, you know. It’s a funny thing. They’re hoping for a return, a little peace of mind. Two popular choices are the iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB +0.28%) and the Vanguard Total Bond Market ETF (BND +0.29%). Both are attempts to cheat entropy, really. Let’s look at them. So it goes.
The Numbers, Such as They Are
Here’s a little table. Numbers are supposed to mean something, but mostly they just are.
| Metric | IGIB | BND |
|---|---|---|
| Issuer | iShares | Vanguard |
| Expense ratio | 0.04% | 0.03% |
| One-year return (Feb. 14, 2026) | 5.55% | 4.19% |
| Dividend yield | 4.57% | 3.83% |
| Beta | 0.35 | 0.27 |
| Assets under management (AUM) | $18.11 billion | $389.22 billion |
BND is a bit cheaper, if you’re counting pennies. IGIB gives you a little more yield, which is nice. People like income. They need it. It’s a way to postpone the inevitable.
Performance and Risk: A Gentle Decline
Here’s another table. More numbers. They tell a story, I suppose. A story about managing expectations.
| Metric | IGIB | BND |
|---|---|---|
| Max drawdown (five years) | -20.61% | -17.91% |
| Growth of $1,000 over five years | $881 | $853 |
Both went down, naturally. That’s what happens. The market giveth, and the market taketh away. IGIB held up a tiny bit better. A small victory in a long, slow defeat.
What’s Inside the Box
IGIB has been focused on corporate bonds for about 20 years. 2,979 of them. Mostly bonds from companies you’ve heard of – Goldman Sachs, Bank of America. A- and BBB-rated, which means they’re probably okay. Probably.
BND is broader. 15,000 securities. Treasuries, mortgage-backed securities, more corporate bonds. It’s designed for people who want a little bit of everything. A diversified attempt to avoid the worst of it.
What This Means, If Anything
Choosing between these two comes down to how much you worry. Both have similar returns. Both have fallen. Corporate bonds are riskier than government bonds. That’s just a fact.
BND has more government bonds. It’s safer. It’s also slower. It’s like choosing between a slow, steady decline and a slightly faster one. 72% of BND is in AAA-rated bonds – the safest bonds there are. IGIB? Less than one percent.
Government bonds are less risky, but they don’t pay much. Higher-rated bonds are even safer, but even slower. It’s a trade-off. Everything is a trade-off.
Bond funds don’t grow quickly. They just… exist. But the dividends can be nice. A small comfort in a chaotic world. So it goes.
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2026-02-15 08:42