IEI Offers Lower Costs and Higher Scale Than FIGB

John Ballard, The Motley Fool

Tue, February 10, 2026 astatine 9:48 AM CST 4 min read

The iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) and the Fidelity Investment Grade Bond ETF (NYSEMKT:FIGB) disagree astir successful cost, yield, and risk: IEI is much affordable and larger, portion FIGB pays a higher output but has seen sharper downturns.

IEI aims to way the show of U.S. Treasury bonds with maturities of 3 to 7 years, offering a pure-play connected authorities debt. FIGB, successful contrast, provides vulnerability to a broader acceptable of U.S. investment-grade bonds, including corporates, for investors seeking diversification beyond Treasuries. This examination looks astatine cost, performance, risk, and what is wrong each fund.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

IEI is much affordable with a 0.15% disbursal ratio, compared to FIGB’s 0.36%. While FIGB offers a higher dividend output astatine 4.1%, IEI’s little outgo and higher assets nether absorption (AUM) whitethorn entreaty to cost-conscious investors oregon those seeking greater liquidity.

FIGB is designed to supply diversified vulnerability to U.S. investment-grade bonds, with 653 holdings arsenic of Jan. 30, 2026. With astir 5 years connected the market, its apical holdings see U.S. Treasury Notes 4.25% and different akin securities. Almost half, oregon 45%, of its portfolio is comprised of authorities bonds, with 23% invested successful securitized bonds, and 22% successful firm bonds. This premix reflects its absorption connected holding high-quality securities crossed the enslaved market.

IEI, successful contrast, invests solely successful U.S. Treasury securities, with 85 holdings and nary firm recognition exposure. Its apical allocations are to Treasury Note 11/30/2030 4.38%, Treasury Note 02/15/2029 2.63%, and Treasury Note 05/15/2029 2.38%, reflecting a axenic authorities enslaved approach. Neither money has unsocial structural quirks oregon uses leverage, and some are presently 100% allocated to currency and equivalents.

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