FIGB vs. IEI: Fidelity Bond ETF Offers Higher Yield But iShares Treasury Fund Has Lower Fees
Key Points
Fidelity Investment Grade Bond ETF provides a higher trailing-12-month distribution yield than iShares 3-7 Year Treasury Bond ETF but carries more than double the expense ratio
iShares 3-7 Year Treasury Bond ETF focuses exclusively on medium-term government debt while Fidelity Investment Grade Bond ETF diversifies across broader high-grade bond sectors
Fidelity Investment Grade Bond ETF has delivered higher recent 1-year returns though iShares 3-7 Year Treasury Bond ETF has shown a slightly better total return over the last 5 years with less downside risk
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Fidelity Investment Grade Bond ETF (NYSEMKT:FIGB)offers a higher yield than iShares 3-7 Year Treasury Bond ETF(NASDAQ:IEI), though it comes with higher costs and greater historical drawdown risk.
Snapshot (cost & size)
| Metric | IEI | FIGB |
|---|---|---|
| Issuer | iShares | Fidelity |
| Expense ratio | 0.15% | 0.36% |
| 1-yr return (as of Apr. 17, 2026) | 4.4% | 6.7% |
| Dividend yield | 3.6% | 4.1% |
| Beta | 0.16 | 0.28 |
| AUM | $18.8 Billion | $457.4 Million |
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 fund is significantly more affordable with an expense ratio of 0.15%, compared to 0.36% for FIGB. However, the Fidelity fund offers a higher payout, with a 4.1% distribution yield versus 3.6% for the iShares Treasury fund.
Performance & risk comparison
| Metric | IEI | FIGB |
|---|---|---|
| Max drawdown (5 yr) | (13.9%) | (18.1%) |
| Growth of $1,000 over 5 years (total return) | $1,027 | $1,023 |
What's inside
Fidelity Investment Grade Bond ETF is a bond fund that invests across various high-grade sectors, though its current sector breakdown shows 100% in cash and U.S. Treasuries. This fund was launched in 2021.
In contrast, the iShares 3-7 Year Treasury Bond ETF is a pure-play fixed-income fund with no equity sector exposure, focusing entirely on U.S. Treasury notes. The fund was launched in 2007.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Both the Fidelity Investment Grade Bond ETF (FIGB) and the iShares 3-7 Year Treasury Bond ETF (IEI) are exchange-traded funds (ETFs) that income-oriented investors should get to know. While both of them are bond ETFs, they differ in some key respects.
First, IEI is an ETF with an airtight remit: It invests only in three to seven-year U.S. Treasury notes, thus providing investors with direct exposure to what fixed-income traders call the ‘belly’ of the yield curve — medium-term interest rates in the three to seven-year range.
FIGB, by contrast, has a slightly different strategy. It can hold investment-grade bonds from multiple sectors, including corporate debt. However, its current breakdown suggests the fund is fully invested in U.S. treasuries and cash.
As for fees, IEI has a lower expense ratio of 0.15%, while FIGB has an expense ratio of 0.36%. FIGB wins the head-to-head matchup on yield, with a dividend yield of 4.1% vs. IEI’s 3.6%.
In summary, income-seeking investors may want to consider these two bond funds. Cost-conscious investors may favor IEI for its lower expense ratio, while those focused solely on yield may select FIGB for its higher dividend yield.
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