IG vs VGI
IG vs VGI
Principal Investment Grade Corporate ETF vs Virtus Global Multi-Sector Income Fund
Quick Verdict
IG has a lower expense ratio. VGI delivered stronger 1-year returns. VGI offers more diversification with 434 holdings.
Side-by-Side Comparison
| Metric | IG | VGI | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 1.74% | |
| AUM | $198M | $88M | |
| Dividend Yield | 5.07% | 11.98% | |
| Holdings | 248 | 646 | |
| YTD Return | -1.54% | +1.47% | |
| 1Y Return | +0.84% | +5.12% | |
| 3Y Return (annualized) | +4.56% | +11.60% | |
| 5Y Return (annualized) | -0.69% | +2.10% | |
| Volatility (annualized) | 8.0% | 14.2% | |
| Max Drawdown | -23.8% | -63.3% | |
| Fund Family | Principal Funds | Virtus Investment Partners | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 18, 2018 | Feb 23, 2012 |
IG vs VGI Performance
Principal Investment Grade Corporate ETF (IG) is a ETF from Principal Funds and Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners. Over the past year IG returned +0.84% while VGI returned +5.12%. Year to date, IG is down 1.54% versus a gain of 1.47% for VGI.
Over three years, IG compounded at +4.56% per year against +11.60% for VGI; over five years the annualized figures are -0.69% and +2.10% respectively. Across the full 8-year window we track, IG has the edge at +0.59% annualized vs -2.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGI has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 8.0% for IG. 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 -23.8% for IG and -63.3% for VGI. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IG charges 0.19% per year while VGI charges 1.74%. On a $10,000 position that is $19 vs $174 annually, a gap of $155 per year that compounds over a long holding period. On income, IG currently yields 5.07% against 11.98% for VGI.
Holdings Overlap
IG and VGI share 2 holdings out of 577 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IG | Weight in VGI | Difference |
|---|---|---|---|
| HBAN V5.709 02/02/35 | 1.47% | 0.30% | 1.17% |
| AER V6.95 03/10/55 | 0.21% | 0.17% | 0.04% |
Frequently Asked Questions
Which is cheaper, IG or VGI?
IG has an expense ratio of 0.19% while VGI charges 1.74%. IG is the cheaper option. On a $10,000 investment, that is $155 per year of difference.
Which performed better, IG or VGI?
Over the past year IG returned +0.84% vs +5.12% for VGI, so VGI leads on 1-year performance. Over the longest common window we track (8 years), IG annualized +0.59% vs -2.38% for VGI. Past performance does not guarantee future results.
Which is riskier, IG or VGI?
VGI has been the more volatile fund at 14.2% annualized versus 8.0% for IG. Worst drawdown: IG -23.8% vs VGI -63.3%.
Should I hold both IG and VGI?
IG and VGI have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IG and VGI?
IG and VGI share 2 common holdings with a 0.5% weight overlap. Combined, they hold 577 unique securities.
Which pays a higher dividend, IG or VGI?
IG yields 5.07% while VGI yields 11.98%, so VGI currently pays the higher dividend yield.
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