--- title: "iShares vs. Vanguard Bond ETFs: Which Is a Better Fit for Income Investors?" type: "News" locale: "en" url: "https://longbridge.com/en/news/287810612.md" description: "The iShares 5-10 Year Investment Grade Corporate Bond ETF and Vanguard Intermediate-Term Corporate Bond ETF offer similar exposure to mid-maturity corporate bonds, with both yielding 4.7% dividends. iShares has a broader diversification with nearly 3,000 bonds compared to Vanguard's 2,000. Both funds have low expense ratios and comparable returns, making them suitable for income-focused investors. The choice between them may depend on preferences for liquidity versus diversification." datetime: "2026-05-27T19:05:25.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287810612.md) - [en](https://longbridge.com/en/news/287810612.md) - [zh-HK](https://longbridge.com/zh-HK/news/287810612.md) --- # iShares vs. Vanguard Bond ETFs: Which Is a Better Fit for Income Investors? ## Key Points - iShares 5-10 Year Investment Grade Corporate Bond ETF and Vanguard Intermediate-Term Corporate Bond ETF provide nearly identical exposure to mid-maturity corporate credit at a minimal cost difference. - Both funds reported a similar total return over the last 12 months as of May 18, 2026, and share a matching 4.7% dividend yield. - The iShares fund holds nearly 3,000 individual bonds, offering broader diversification than the Vanguard fund, which holds around 2,000 positions. - 10 stocks we like better than Vanguard Scottsdale Funds - Vanguard Intermediate-Termorate Bond ETF › Investors seeking steady income from high-quality corporate debt often look toward the intermediate-term segment. Both **iShares 5-10 Year Investment Grade Corporate Bond ETF** (NASDAQ:IGIB) and **Vanguard Intermediate-Term Corporate Bond ETF** (NASDAQ:VCIT) target bonds with maturities between five and 10 years, aiming to balance yield against interest-rate sensitivity. IGIB and VCIT offer nearly identical intermediate corporate bond exposure, differing primarily in diversification scale and a minor 1-basis-point expense gap. This comparison explores whether the Vanguard fund's massive scale or the iShares fund's deeper diversification provides a better fit for your portfolio. ## Snapshot (cost & size) Metric VCIT IGIB Issuer Vanguard iShares Expense ratio 0.03% 0.04% 1-yr return (as of 5/18/26) 5.8% 5.9% Dividend yield 4.7% 4.7% Beta 0.33 0.34 AUM ~$68.1 billion ~$18 billion Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield. Cost is a minor differentiator in this matchup, as the Vanguard fund carries a 0.03% expense ratio compared to 0.04% for the iShares fund. Both funds currently offer an identical 4.7% trailing-12-month dividend yield. ## Performance & risk comparison Metric VCIT IGIB Max drawdown (5 yr) (20.6%) (20.6%) Growth of $1,000 over 5 years (total return) $1,061 $1,069 ## What's inside iShares 5-10 Year Investment Grade Corporate Bond ETF is a fixed-income fund focusing on U.S. dollar-denominated investment-grade bonds with remaining maturities of five to 10 years. Launched in 2007, it maintains a highly diversified portfolio of around 3,000 holdings, where its largest positions each represent less than 0.25% of its assets under management (AUM). The fund paid $2.53 per share over the trailing 12 months. Vanguard Intermediate-Term Corporate Bond ETF similarly focuses on high-quality corporate debt with a dollar-weighted average maturity of five to 10 years. Launched in 2009, it holds 2,235 bonds, making it more concentrated than its iShares peer, though its top holdings still remain below 0.37% of the portfolio. This fund, with $68.1 billion in AUM, paid $3.94 per share over the trailing 12 months. For more guidance on ETF investing, check out the full guide at this link. ## What it means for investors The iShares 5-10 Year Investment Grade Corporate Bond ETF and the Vanguard Intermediate-Term Corporate Bond ETF could be good additions to your portfolio if you’re looking for diversification, relative safety, or reliable income. Both ETFs hold corporate bonds, or debt issued by companies, that mature in five to 10 years, which is a sort of middle ground for bond maturity dates. Their dividends both yield about 4.7%, much higher than the **S&P 500** average yield of around 1%, and they pay their distributions monthly, which can be beneficial for investors who use the payouts to cover bills or other expenses. The major differences between the two ETFs come down to their assets under management and portfolio concentration. VCIT’s fund is nearly 4 times larger than IGIB’s, but also more concentrated, holding about 1,000 fewer bonds. It’s also ever so slightly less expensive when it comes to fees, though both ETFs charge ultra-low expense ratios. If overall liquidity is your goal, you may be more drawn to VCIT’s larger AUM. If you’re worried about concentration risk, IGIB may be a better fit for you. For most investors who are interested in adding corporate bond exposure, both of these funds could be right at home as part of a diversified portfolio. ## Should you buy stock in Vanguard Scottsdale Funds - Vanguard Intermediate-Termorate Bond ETF right now? Before you buy stock in Vanguard Scottsdale Funds - Vanguard Intermediate-Termorate Bond ETF, consider this: The _Motley Fool Stock Advisor_ analyst team just identified what they believe are the **10 best stocks** for investors to buy now… and Vanguard Scottsdale Funds - Vanguard Intermediate-Termorate Bond ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when **Netflix** made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, **you’d have $472,852**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,317,207**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 984% — a market-crushing outperformance compared to 210% for the S&P 500. **Don't miss the latest top 10 list, available with _Stock Advisor_, and join an investing community built by individual investors for individual investors.** See the 10 stocks » _\*Stock Advisor returns as of May 27, 2026._ _Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy._ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ### Related Stocks - [IGIB.US](https://longbridge.com/en/quote/IGIB.US.md) - [VCIT.US](https://longbridge.com/en/quote/VCIT.US.md) - [LQD.US](https://longbridge.com/en/quote/LQD.US.md) ## Related News & Research - [United States Brent Oil Fund LP ETF announces June NAV of $40.41](https://longbridge.com/en/news/294302677.md) - [1 brilliant ETF I'm loading up on if inflation continues climbing](https://longbridge.com/en/news/294341440.md) - [Prediction: This dividend ETF will thrive after 20 years no matter what the market does](https://longbridge.com/en/news/294059986.md) - [SCHD is magnificent, but this dividend ETF could be an even better dividend play](https://longbridge.com/en/news/293940534.md) - [Prediction: This international ETF will beat US stocks for the next 5 years](https://longbridge.com/en/news/294218011.md)