Vanguard VGIT vs iShares IEI: Understanding the Stability Behind Each Strategy

Core Insights - Both iShares 3-7 Year Treasury Bond ETF (IEI) and Vanguard Intermediate-Term Treasury ETF (VGIT) provide exposure to U.S. Treasury bonds with moderate interest rate risk, but they differ in cost, yield, and portfolio focus [2][7] Cost and Size Comparison - VGIT has a lower expense ratio of 0.03% compared to IEI's 0.15%, making it more affordable for investors [3] - As of October 31, 2025, VGIT offers a yield of 3.8%, while IEI provides a yield of 3.4% [3] Performance and Risk Analysis - Over the past five years, VGIT experienced a maximum drawdown of -15.52%, while IEI had a drawdown of -14.21% [4] - An investment of $1,000 would have grown to $861 in VGIT and $901 in IEI over the same period [4] Portfolio Composition - IEI focuses on U.S. Treasury bonds with maturities between three and seven years, holding 82 positions as of November 3, 2025 [5] - VGIT invests in U.S. Treasury bonds with maturities ranging from three to ten years, with 76 holdings and an ESG screen applied [6] Investment Strategy and Appeal - VGIT is positioned as a low-cost, broad option that captures more yield, appealing to investors seeking a dependable long-term bond anchor [8] - IEI offers a more contained level of rate sensitivity with a focus on a narrower maturity range, appealing to investors who prefer a precise bond holding [9][10]