FTCB vs IG

Quick Verdict

IG has a lower expense ratio. FTCB delivered stronger 1-year returns. FTCB offers more diversification with 331 holdings.

Lower Fees: IGHigher Returns: FTCBMore Diversified: FTCB

Side-by-Side Comparison

MetricFTCBIGWinner
Expense Ratio0.56%0.19%
AUM$2.5B$198M
Dividend Yield5.24%5.07%
Holdings721248
YTD Return+0.12%-1.54%
1Y Return+2.43%+0.84%
3Y Return (annualized)-+4.56%
5Y Return (annualized)--0.69%
Volatility (annualized)5.1%8.0%
Max Drawdown-5.0%-23.8%
Fund FamilyFirst Trust Portfolios (US)Principal Funds
CategoryFixed IncomeFixed Income
InceptionNov 7, 2023Apr 18, 2018

FTCB vs IG Performance

First Trust Core Investment Grade ETF (FTCB) is a ETF from First Trust Portfolios (US) and Principal Investment Grade Corporate ETF (IG) is a ETF from Principal Funds. Over the past year FTCB returned +2.43% while IG returned +0.84%. Year to date, FTCB is up 0.12% versus a loss of 1.54% for IG.

Risk: Volatility and Drawdowns

IG has been the more volatile fund, with annualized monthly volatility of 8.0% compared with 5.1% for FTCB. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -5.0% for FTCB and -23.8% for IG. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FTCB charges 0.56% per year while IG charges 0.19%. On a $10,000 position that is $56 vs $19 annually, a gap of $37 per year that compounds over a long holding period. On income, FTCB currently yields 5.24% against 5.07% for IG.

Holdings Overlap

0.6%overlap

FTCB and IG share 4 holdings out of 472 unique holdings combined, representing a 0.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FTCBWeight in IGDifference
BA 5.805 05/01/500.14%1.26%1.12%
CITSEC 5.5 06/18/300.19%0.78%0.59%
MARS 5.7 05/01/55 140.17%0.75%0.58%
ZION V4.704 08/18/28ProProPro
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Frequently Asked Questions

Which is cheaper, FTCB or IG?

FTCB has an expense ratio of 0.56% while IG charges 0.19%. IG is the cheaper option. On a $10,000 investment, that is $37 per year of difference.

Which performed better, FTCB or IG?

Over the past year FTCB returned +2.43% vs +0.84% for IG, so FTCB leads on 1-year performance. Over the longest common window we track (3 years), FTCB annualized +5.77% vs +0.59% for IG. Past performance does not guarantee future results.

Which is riskier, FTCB or IG?

IG has been the more volatile fund at 8.0% annualized versus 5.1% for FTCB. Worst drawdown: FTCB -5.0% vs IG -23.8%.

Should I hold both FTCB and IG?

FTCB and IG have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between FTCB and IG?

FTCB and IG share 4 common holdings with a 0.6% weight overlap. Combined, they hold 472 unique securities.

Which pays a higher dividend, FTCB or IG?

FTCB yields 5.24% while IG yields 5.07%, so FTCB currently pays the higher dividend yield.

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