Vanguard's VCIT or Fidelity's FIGB: Which Bond ETF Is the Better Buy Right Now?
Key takeaways
- Both ETFs provide exposure to high-quality debt, but they serve different roles in a fixed income portfolio.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The Vanguard fund is the more affordable option, featuring an expense ratio of 0.03% that sits well below the 0.36% charged by the Fidelity fund.
Both ETFs provide exposure to high-quality debt, but they serve different roles in a fixed income portfolio. While VCIT targets a specific five- to 10-year maturity range for corporate bonds, FIGB offers a broader, multi-sector approach to the investment-grade market, including government debt issues. This comparison explores how these two funds approach the fixed income market, providing investors with different levels of yield, expense, and price sensitivity.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund is the more affordable option, featuring an expense ratio of 0.03% that sits well below the 0.36% charged by the Fidelity fund. Additionally, VCIT has offered a higher payout recently, maintaining a yield gap of 0.69 percentage points.