IGBH vs VGI

Quick Verdict

IGBH has a lower expense ratio. IGBH delivered stronger 1-year returns. VGI offers more diversification with 434 holdings.

Lower Fees: IGBHHigher Returns: IGBHMore Diversified: VGI

Side-by-Side Comparison

MetricIGBHVGIWinner
Expense Ratio0.14%1.74%
AUM$203M$88M
Dividend Yield5.68%11.98%
Holdings4,130646
YTD Return+1.56%+1.20%
1Y Return+5.34%+4.44%
3Y Return (annualized)+7.50%+11.02%
5Y Return (annualized)+5.31%+1.85%
Volatility (annualized)7.5%14.1%
Max Drawdown-38.9%-63.3%
Fund FamilyiShares by BlackRock (US)Virtus Investment Partners
CategoryFixed IncomeFixed Income
InceptionJul 22, 2015Feb 23, 2012

IGBH vs VGI Performance

iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH) is a ETF from iShares by BlackRock (US) and Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners. Over the past year IGBH returned +5.34% while VGI returned +4.44%. Year to date, IGBH is up 1.56% versus a gain of 1.20% for VGI.

Over three years, IGBH compounded at +7.50% per year against +11.02% for VGI; over five years the annualized figures are +5.31% and +1.85% respectively. Across the full 11-year window we track, IGBH has the edge at +2.85% annualized vs -2.40%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VGI has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IGBH charges 0.14% per year while VGI charges 1.74%. On a $10,000 position that is $14 vs $174 annually, a gap of $160 per year that compounds over a long holding period. On income, IGBH currently yields 5.68% against 11.98% for VGI.

Holdings Overlap

0.0%overlap

IGBH and VGI share 0 holdings out of 510 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 VGI?

IGBH has an expense ratio of 0.14% while VGI charges 1.74%. IGBH is the cheaper option. On a $10,000 investment, that is $160 per year of difference.

Which performed better, IGBH or VGI?

Over the past year IGBH returned +5.34% vs +4.44% for VGI, so IGBH leads on 1-year performance. Over the longest common window we track (11 years), IGBH annualized +2.85% vs -2.40% for VGI. Past performance does not guarantee future results.

Which is riskier, IGBH or VGI?

VGI has been the more volatile fund at 14.1% annualized versus 7.5% for IGBH. Worst drawdown: IGBH -38.9% vs VGI -63.3%.

Should I hold both IGBH and VGI?

IGBH and VGI have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IGBH and VGI?

IGBH and VGI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 510 unique securities.

Which pays a higher dividend, IGBH or VGI?

IGBH yields 5.68% while VGI yields 11.98%, so VGI currently pays the higher dividend yield.

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