Bond Markets Are Volatile. Here's How to Choose Between Government and Corporate Debt.
Key takeaways
- Investors looking to balance their portfolios often turn to intermediate-term bonds for a mix of income and stability.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The iShares corporate bond fund is more affordable with an expense ratio of 0.04%, while the iShares Treasury fund charges 0.15%.
Investors looking to balance their portfolios often turn to intermediate-term bonds for a mix of income and stability. This comparison explores whether the safety of government-backed debt in IEI justifies its higher expense ratio compared to the diversified corporate credit exposure found in IGIB.
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 iShares corporate bond fund is more affordable with an expense ratio of 0.04%, while the iShares Treasury fund charges 0.15%. Additionally, IGIB provides a higher payout, with a dividend yield 1.17 percentage points above its peer.