IGIB — iShares Intermediate-Term Corporate Bond ETF
IGIB provides exposure to investment-grade US corporate bonds with maturities between 5 and 10 years. It is closely comparable to Vanguard's VCIT, tracking a similar intermediate corporate bond index at a slightly higher expense ratio. IGIB holds hundreds of investment-grade corporate bonds across diverse sectors, offering a yield premium over Treasuries at intermediate duration.
Top Holdings
Strategy
- →Use as the intermediate corporate bond sleeve in a diversified fixed-income allocation
- →Combine with Treasury ETFs for a blended government/corporate bond exposure
- →Trade around credit cycle expectations — reduce before recessions, add during recoveries
- →Pair with IGSB for a short/intermediate corporate bond barbell
Best For
- ✓Investors seeking intermediate corporate bond exposure on the iShares platform
- ✓Those building a fixed-income ladder with distinct duration and credit components
- ✓Income-focused investors who want a yield pickup over government bonds
- ✓Institutional investors using iShares for specific corporate credit exposure
Key Risks
- ⚠Corporate credit risk — spreads widen during economic downturns
- ⚠Intermediate duration (~6 years) creates meaningful interest rate sensitivity
- ⚠Higher expense ratio (0.06%) than Vanguard's VCIT (0.04%)
- ⚠Sector concentration in financials and industrials
Similar ETFs
Frequently Asked Questions
How does IGIB compare to VCIT?
Both hold intermediate-term investment-grade corporate bonds. VCIT charges 0.04% while IGIB charges 0.06%. Performance is very similar given comparable benchmarks. VCIT has a slight cost advantage for long-term investors. This is educational content, not financial advice.
What is IGIB's duration?
IGIB has a duration of approximately 6 years, meaning a 1% rise in rates would cause roughly a 6% decline in price. This is moderate interest rate risk. This is educational content, not financial advice.
Does IGIB include any Treasury bonds?
No. IGIB holds only corporate bonds. For a blended government/corporate exposure at intermediate duration, consider BIV or SPIB. This is educational content, not financial advice.
Does IGIB pay monthly dividends?
Yes, IGIB distributes monthly interest income from its corporate bond holdings. This is educational content, not financial advice.
Is IGIB better than LQD?
IGIB focuses on intermediate maturities (5–10yr) at 0.06%, while LQD covers a broader maturity range at 0.14%. If you specifically want intermediate corporate exposure, IGIB is more targeted and cheaper. This is educational content, not financial advice.
Recommended Resources
Tools & books I actually use and recommend
Interactive Brokers
Low commissions, global market access, and professional-grade tools. This is where I hold my positions.
Open an AccountA Random Walk Down Wall Street
Burton Malkiel's classic case for index investing. The book that convinced millions to stop stock-picking.
View on AmazonTradingView
Best charting platform out there. Real-time data, screeners, and a community of millions of traders.
Try TradingViewSome links above are affiliate links. I only recommend products I personally use. See my full disclosures.