Vanguard's BND Offers Bigger Pay and Lower Fees Than Fidelity's FIGB

Core Insights - The Vanguard Total Bond Market ETF (BND) and Fidelity Investment Grade Bond ETF (FIGB) provide broad exposure to the bond market, with BND having a considerable advantage in terms of cost and performance metrics [1] Cost & Size Comparison - FIGB has an expense ratio of 0.36%, while BND has a significantly lower expense ratio of 0.03% [2] - As of February 15, 2026, the one-year return for FIGB is 4.13% and for BND is 4.19% [2] - The dividend yield for FIGB is 4.07%, compared to BND's 3.9% [2] - FIGB has assets under management (AUM) of $423.78 million, while BND has a much larger AUM of $389.22 billion [2] Performance & Risk Comparison - The maximum drawdown over four years for FIGB is -15.02%, while BND's is -14.37% [4] - BND has tracked the broad U.S. investment-grade bond market for nearly 20 years, holding around 15,000 securities [4] - FIGB, launched less than five years ago, holds significantly fewer assets at 735 [5] Investment Implications - BND may be more favorable due to its lower expense ratio and higher overall dividend payout, despite a lower yield percentage [6] - BND has a higher percentage of U.S. government and AAA bonds compared to FIGB, while still maintaining diversity with lower-rated bonds [7] - FIGB may offer slightly higher price return potential due to increased volatility from lower-rated holdings, but the difference in holdings is not substantial [7] - FIGB's relative youth in the market may provide greater scalability in the long term [8]