IGIB vs VCIT ETF Comparison: AI Score, Valuation, Performance and Upside
IGIB and VCIT are nearly identical intermediate-term investment-grade corporate bond ETFs from BlackRock (iShares) and Vanguard respectively — both hold thousands of investment-grade U.S. corporate bonds with 5-10 year maturities, providing similar yield, duration, and credit risk. The practical difference is primarily the expense ratio and index provider (ICE BofA for IGIB vs. Bloomberg for VCIT), with slightly different constituent composition at the margin. Both are excellent, low-cost options for core investment-grade corporate bond exposure.
IGIB vs VCIT is a near-identical intermediate-term investment-grade corporate bond comparison where the meaningful differences are fee efficiency and index methodology rather than investment objectives — iShares IGIB (BlackRock) tracking the ICE BofA 5-10 Year Corporate Index with institutional liquidity and iShares brand recognition versus Vanguard VCIT tracking the Bloomberg 5-10 Year Corporate Index with Vanguard's cost-minimization ethos — both provide excellent core investment-grade corporate bond exposure.
IGIB and VCIT are closely matched — they split the tracked metrics evenly. IGIB has delivered stronger 1-year price return (+5.86% vs +5.76% for VCIT).
- →Already use iShares ETFs and prefer maintaining a consistent ETF family for portfolio simplicity — iShares is the largest ETF provider globally with the broadest lineup across asset classes
- →Value IGIB's high trading liquidity for institutional-sized positions — IGIB's large AUM enables tight bid-ask spreads even for large block trades
- →Work with financial advisors or brokerage platforms that have preferred iShares relationships or zero-commission IGIB trading
- →Prefer Vanguard's cost-minimization philosophy and own Vanguard accounts where VCIT trades commission-free without minimums
- →Value the Bloomberg bond index family as the dominant institutional fixed income benchmark used in performance reporting and comparison
- →Already use Vanguard equity ETFs (VTI, VOO, VEA) and want to maintain a consistent Vanguard portfolio structure across asset classes
| Metric | IGIB | VCIT |
|---|---|---|
| ETF score | 45.0 | 55.0 |
| Latest close | $53.05 | $82.48 |
| 1M return | +1.54% | +1.57% |
| 6M return | +0.72% | +0.70% |
| 1Y return | +5.86% | +5.76% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | IGIB | VCIT |
|---|---|---|
| 1Y ago | $11.11K (+11.1%) started 2025-06-18 | $11.1K (+11.0%) started 2025-06-18 |
| 5Y ago | $13.2K (+32.0%) started 2021-06-18 | $13.16K (+31.6%) started 2021-06-18 |
| 10Y ago | $20.22K (+102.2%) started 2016-06-20 | $20.49K (+104.9%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | IGIB | VCIT |
|---|---|---|
| Expense ratio | 0.04% | 0.03% |
| Total assets (AUM) | $18.22B | $68.73B |
| Dividend yield | 4.75% | 4.75% |
| Trailing P/E | N/A | N/A |
| Beta | 0.33 | 0.33 |
| 52-week change | 5.86% | 5.76% |
| Metric | IGIB | VCIT |
|---|---|---|
| 1Y return | +5.86% | +5.76% |
| 6M return | +0.72% | +0.70% |
| 1M return | +1.54% | +1.57% |
| 1Y Sharpe ratio | 0.32 | 0.30 |
| Beta | 0.33 | 0.33 |
| Dividend yield | 4.75% | 4.75% |
| 5Y CAGR | +1.30% | +1.15% |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | IGIB | VCIT |
|---|---|---|---|
| 1Y | Growth | +5.86% | +5.76% |
| CAGR | +5.86% | +5.77% | |
| Sharpe ratio | 0.32 | 0.30 | |
| Max drawdown | 3.01% | 2.96% | |
| Max daily drop | 0.99% | 0.94% | |
| Max wkly drop | 1.34% | 1.40% | |
| 5Y | Growth | +6.64% | +5.87% |
| CAGR | +1.30% | +1.15% | |
| Sharpe ratio | -0.46 | -0.47 | |
| Max drawdown | 20.63% | 20.56% | |
| Max daily drop | 1.82% | 1.71% | |
| Max wkly drop | 4.20% | 4.34% | |
| 10Y | Growth | +34.99% | +33.63% |
| CAGR | +3.05% | +2.94% | |
| Sharpe ratio | -0.22 | -0.22 | |
| Max drawdown | 20.63% | 20.56% | |
| Max daily drop | 4.35% | 4.49% | |
| Max wkly drop | 10.38% | 11.29% |
| Category | IGIB | VCIT |
|---|---|---|
| Fund name | iShares 5-10 Year Investment Grade Corporate Bond ETF | Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratio | 0.04% | 0.03% |
| Total assets (AUM) | $18.22B | $68.73B |
| Dividend yield | 4.75% | 4.75% |
- →High liquidity and iShares brand institutional acceptance — iShares is the world's largest ETF provider; IGIB benefits from institutional familiarity and is heavily used by institutional investors and financial advisors for fixed income portfolio construction
- →Broad diversification across hundreds of investment-grade corporate bond issuers — IGIB holds 2,000+ bonds across hundreds of issuers; single-issuer default risk is extremely diluted; investment-grade ratings reduce default probability significantly versus high-yield bonds
- →ICE BofA index provides comprehensive investment-grade corporate bond market coverage — the ICE BofA 5-10 Year Corporate Index is a well-recognized, comprehensive index capturing a large portion of the intermediate-term investment-grade corporate bond universe
- →Vanguard's cost leadership — Vanguard is known for the lowest-cost index funds and ETFs; VCIT typically has an expense ratio competitive with or below IGIB; over 10-20 year investment horizons, even small expense ratio differences compound significantly
- →Bloomberg US Aggregate Bond Index family recognition — Bloomberg (formerly Barclays) bond indices are the dominant bond benchmark family; the Bloomberg US 5-10 Year Corporate Bond Index is a well-known, widely referenced benchmark that institutional investors track
- →Vanguard's mutual ownership structure aligns with investor interests — Vanguard is owned by its funds (and therefore by fund shareholders); Vanguard's objective is to minimize costs for investors rather than maximize profits for external shareholders
- →Interest rate sensitivity (duration risk) — intermediate-term corporate bonds with 5-10 year maturities have moderate duration (approximately 6-7 years); each 1% increase in interest rates reduces bond prices by approximately 6-7%; rising rate environments create capital losses in IGIB even with ongoing coupon income
- →Credit spread widening during economic stress — investment-grade corporate bond spreads (premium over Treasuries) widen during recessions and credit stress events; IGIB underperforms Treasuries during credit market stress even with its investment-grade focus
- →Lower yield than high-yield bonds — investment-grade bonds' lower credit risk comes with lower yields; in low-interest-rate environments, IGIB's yield may be insufficient to meet investors' income needs
- →Same interest rate and credit risk as IGIB — VCIT and IGIB are nearly identical in risk profile; rising interest rates and credit spread widening affect both equally
- →VCIT and IGIB have nearly identical portfolios, performance, and risk — investors choosing between VCIT and IGIB are making a very marginal decision; the small differences in index coverage and expense ratios dominate the comparison rather than meaningful investment characteristic differences
- →Bond ETF tracking error — the difference between VCIT's NAV return and the benchmark index return; Vanguard's bond ETF management has historically achieved tight tracking, but complex bond markets can create tracking differences
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.