iShares 3-7 Year Treasury Bond ETF

IEI

Market cap $18.5B

The Vanguard Total Bond Market ETF carries a lower expense ratio and a slightly dividend yield than the iShares 3-7 Year Treasury Bond ETF. BND holds a much broader range of bonds, while IEI focuses solely on U.S. treasuries.

IEI offers a lower expense ratio and higher assets under management (AUM) compared to FIGB. FIGB delivers a higher dividend yield but has experienced a deeper drawdown over four years.

IEI charges a higher expense ratio but has a higher dividend yield than MUB. MUB has multiple tax exemptions, while IEI has none.

IGIB charges a lower expense ratio and offers a higher yield compared to IEI. IEI holds lower-risk bonds, but IGIB can offer greater volatility for investors who want the opportunity for bigger price swings.

FBND offers a higher dividend yield but comes with a steeper expense ratio than IEI. FBND holds a much broader mix of sectors, while IEI sticks exclusively to Treasuries.

The iShares 3-7 Year Treasury Bond ETF (IEI) offers moderate duration exposure but faces competition from more cost-efficient ETF combinations. Recent labor market softness and subdued consumer sentiment despite some recovery are a worry for the growth mandate though we wonder how much rate cuts would help. While CPI is below 3%, persistent shelter inflation could still persist inflation despite a tougher job market for wage price setters.

VGIT offers a lower expense ratio and slightly higher yield than IEI. IEI has delivered slightly better 1-year and 5-year returns with a shallower drawdown.

iShares 3-7 Year Treasury Bond ETF (IEI +0.13%) and Vanguard Intermediate-Term Treasury ETF (VGIT +0.14%) both target U.S. Treasuries in the intermediate maturity range, but differ on cost, yield, and subtle portfolio focus.

A compelling observation was made by Jeffrey Sherman, deputy chief investment officer at DoubleLine, on stage at the Astoria Advisors Macro Summit. He had just stated, “As a bond investor, I'm here to tell you that we're not special, but that we tend to be more risk-averse.

Treasuries resilient: Medium-term US bonds, via IEI ETF, show limited price impact despite government shutdowns and ongoing fiscal deficits. The IEI ETF offers no-thrills returns in times when the economy is transitioning. Despite the rise in term-premium last year, it has stabilized and has not risen further, even in the midst of political woes, the rising US budget deficit, and the trade war.