Vanguard BND Offers Broader Bond Mix Than BlackRock's IEI

Core Insights - The iShares 3-7 Year Treasury Bond ETF (IEI) and the Vanguard Total Bond Market ETF (BND) cater to investors seeking core bond exposure, with IEI focusing on intermediate-term U.S. Treasuries and BND covering a broader range of investment-grade bonds [1] Cost & Size - IEI has an expense ratio of 0.15% and assets under management (AUM) of $18.06 billion, while BND has a lower expense ratio of 0.03% and a significantly larger AUM of $389.22 billion [2] - The one-year return for IEI is 4.22% compared to BND's 4.19%, with dividend yields of 3.48% for IEI and 3.83% for BND [2] Performance & Risk Comparison - Over five years, IEI experienced a maximum drawdown of -13.89%, while BND had a higher drawdown of -17.91% [4] - A $1,000 investment in IEI would have grown to $902 over five years, compared to $853 for BND [4] Holdings Composition - BND holds a diverse portfolio of approximately 15,000 securities, providing balanced exposure across Treasuries, mortgage-backed securities, and investment-grade corporates [5] - IEI consists of 87 positions focused exclusively on U.S. Treasury bonds maturing in three to seven years, with nearly 100% of its holdings rated AA [6] Investment Considerations - The choice between IEI and BND depends on investor preference for diverse bond exposure versus concentrated U.S. government fixed-income [7] - Although BND offers a higher dividend yield percentage, IEI's actual monthly dividend payouts are nearly double due to its higher price point [9]