IGSB vs VTI
iShares 1-5 Year Investment Grade Corporate Bond ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. IGSB offers more diversification with 4,645 holdings.
Side-by-Side Comparison
| Metric | IGSB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.03% | |
| AUM | $23.4B | $666.9B | |
| Dividend Yield | 4.60% | 1.07% | |
| Holdings | 4,645 | 3,543 | |
| YTD Return | +0.91% | +12.23% | |
| 1Y Return | +2.70% | +20.11% | |
| 3Y Return (annualized) | +5.76% | +20.52% | |
| 5Y Return (annualized) | +2.50% | +11.49% | |
| Volatility (annualized) | 2.7% | 15.3% | |
| Max Drawdown | -13.4% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | May 24, 2001 |
IGSB vs VTI Performance
iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IGSB returned +2.70% while VTI returned +20.11%. Year to date, IGSB is up 0.91% versus a gain of 12.23% for VTI.
Over three years, IGSB compounded at +5.76% per year against +20.52% for VTI; over five years the annualized figures are +2.50% and +11.49% respectively. Across the full 20-year window we track, VTI has the edge at +8.04% annualized vs +1.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.7% for IGSB. 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 -13.4% for IGSB and -56.6% for VTI. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGSB charges 0.04% per year while VTI charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, IGSB currently yields 4.60% against 1.07% for VTI.
Holdings Overlap
IGSB and VTI share 1 holdings out of 3915 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IGSB | Weight in VTI | Difference |
|---|---|---|---|
| TMUS | 0.17% | 0.10% | 0.07% |
Frequently Asked Questions
Which is cheaper, IGSB or VTI?
IGSB has an expense ratio of 0.04% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, IGSB or VTI?
Over the past year IGSB returned +2.70% vs +20.11% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (20 years), IGSB annualized +1.14% vs +8.04% for VTI. Past performance does not guarantee future results.
Which is riskier, IGSB or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 2.7% for IGSB. Worst drawdown: IGSB -13.4% vs VTI -56.6%.
Should I hold both IGSB and VTI?
IGSB and VTI have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGSB and VTI?
IGSB and VTI share 1 common holdings with a 0.1% weight overlap. Combined, they hold 3915 unique securities.
Which pays a higher dividend, IGSB or VTI?
IGSB yields 4.60% while VTI yields 1.07%, so IGSB currently pays the higher dividend yield.
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