CGSD vs IGSB

CGSDCCapital Group Short Duration Income ETF

IGSBAiShares 1-5 Year Investment Grade Corporate Bond ETF

In short

CGSD Capital Group brings its bond desk to the short end: an actively run fund that seeks current income while emphasizing preservation of capital, priced under the median fee in its category.

IGSB Corporate credit with the rate risk dialed down: roughly 4,700 investment-grade bonds, none maturing past five years, for four basis points. iShares has run it since 2007.

Stated mandate

CGSD The fund seeks current income while maintaining a short-duration profile and emphasizing preservation of capital.

IGSB The fund seeks to track an index containing U.S. dollar-denominated investment-grade corporate bonds with remaining maturities from one through five years.

Why people hold it

• CGSD Active management at 0.25% a year, below the 0.36% median for its bond peer group.
• The mandate is explicit: current income, a short-duration profile, and emphasis on preserving capital. Less rate whiplash than a long-bond sleeve by design.capitalgroup.com
• Roughly 800 bonds spread the credit risk, and income is paid out monthly.
• Billions in assets and steady daily trading put it among the stronger implementations in its cohort.

• IGSB Four basis points a year, a fraction of the typical investment-grade corporate bond fund's fee and level with the cheapest tier of its peer group.
• One-to-five-year maturities mean prices move less when rates move than long-dated corporate funds. Same corporate credit, shorter leash.ishares.com
• Thousands of individual bonds tracking the ICE BofA 1-5 Year US Corporate Index, with income paid monthly.ishares.com
• Trading since 2007, actively traded, and one of the strongest builds in the investment-grade corporate group on cost, portfolio and execution.

Worth knowing

• CGSD Index core-bond options like BND and SCHZ charge 0.03%. The gap is what you pay for an active short-duration approach.
• No index to hold it to. Holdings reflect the manager's judgment on credit and duration.
• Launched in 2022, so it has a short history next to decades-old core bond funds.

• IGSB Short maturities cut both ways: less price damage when rates rise, less lift when they fall.
• These are company bonds, not Treasuries. Investment grade, but credit spreads can widen and prices move with them.
• Only the front of the curve. Sibling IGIB runs 5-10 years and USIG spans broad maturities, both at the same fee.

Full CGSD profile⁠

Full IGSB profile⁠