IGBH vs MFEM
iShares Interest Rate Hedged Long-Term Corporate Bond ETF vs PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF
Quick Verdict
IGBH has a lower expense ratio. MFEM delivered stronger 1-year returns. IGBH offers more diversification with 4,130 holdings.
Side-by-Side Comparison
| Metric | IGBH | MFEM | Winner |
|---|---|---|---|
| Expense Ratio | 0.14% | 0.49% | |
| AUM | $233M | $156M | |
| Dividend Yield | 5.62% | 2.39% | |
| Holdings | 4,130 | 701 | |
| YTD Return | +2.18% | +21.80% | |
| 1Y Return | +5.92% | +33.81% | |
| 3Y Return (annualized) | +7.66% | +20.43% | |
| 5Y Return (annualized) | +5.45% | +8.97% | |
| Volatility (annualized) | 7.5% | 17.7% | |
| Max Drawdown | -38.9% | -45.3% | |
| Fund Family | iShares by BlackRock (US) | PIMCO (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2015 | Aug 31, 2017 |
IGBH vs MFEM Performance
iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH) is a ETF from iShares by BlackRock (US) and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US). Over the past year IGBH returned +5.92% while MFEM returned +33.81%. Year to date, IGBH is up 2.18% versus a gain of 21.80% for MFEM.
Over three years, IGBH compounded at +7.66% per year against +20.43% for MFEM; over five years the annualized figures are +5.45% and +8.97% respectively. Across the full 9-year window we track, MFEM has the edge at +6.84% annualized vs +2.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MFEM has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 7.5% for IGBH. 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 -38.9% for IGBH and -45.3% for MFEM. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IGBH charges 0.14% per year while MFEM charges 0.49%. On a $10,000 position that is $14 vs $49 annually, a gap of $35 per year that compounds over a long holding period. On income, IGBH currently yields 5.62% against 2.39% for MFEM.
Holdings Overlap
IGBH and MFEM share 0 holdings out of 579 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IGBH or MFEM?
IGBH has an expense ratio of 0.14% while MFEM charges 0.49%. IGBH is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, IGBH or MFEM?
Over the past year IGBH returned +5.92% vs +33.81% for MFEM, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), IGBH annualized +2.91% vs +6.84% for MFEM. Past performance does not guarantee future results.
Which is riskier, IGBH or MFEM?
MFEM has been the more volatile fund at 17.7% annualized versus 7.5% for IGBH. Worst drawdown: IGBH -38.9% vs MFEM -45.3%.
Should I hold both IGBH and MFEM?
IGBH and MFEM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGBH and MFEM?
IGBH and MFEM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 579 unique securities.
Which pays a higher dividend, IGBH or MFEM?
IGBH yields 5.62% while MFEM yields 2.39%, so IGBH currently pays the higher dividend yield.
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