GIGB vs QIG

GIGBAGoldman Sachs Access Investment Grade Corporate Bond ETF

QIGBWisdomTree U.S. Corporate Bond Fund

In short

GIGB Most investment-grade corporate bond funds just buy the biggest borrowers. Goldman's index screens the market on liquidity and fundamentals first, then spreads the money across roughly 1,600 bonds for 0.08% a year.

QIG Most investment-grade corporate bond ETFs just buy the market. QIG screens U.S. investment-grade issuers on fundamental and income characteristics first, then pays out monthly.

Stated mandate

GIGB The Fund seeks to track the FTSE Goldman Sachs Investment Grade Corporate Bond Index, which measures U.S.-dollar-denominated investment-grade corporate bonds meeting liquidity and fundamental screening criteria.

QIG The Fund seeks to track, before fees and expenses, the price and yield performance of the WisdomTree U.S. Quality Corporate Bond Index. The index selects U.S. investment-grade corporate issuers based on favorable fundamental and income characteristics.

Why people hold it

• GIGB Costs 0.08% a year, well under the typical investment-grade corporate bond ETF's 0.19%.
• The index screens US dollar investment-grade corporates for liquidity and fundamentals rather than simply following who borrowed the most.gsam.com
• Tracks that index about as tightly as passive bond funds get, and holds roughly 1,600 bonds so no single issuer carries the load.
• Pays monthly, matching how corporate bond coupons tend to land in a portfolio.

• QIG The screen is the whole point: the index picks investment-grade corporate issuers on fundamental and income characteristics instead of simply following whoever borrowed the most.
• 0.18% a year, slightly under the typical investment-grade corporate bond ETF, which is lean for a rules-based screen rather than plain beta.
• Roughly 500 bonds behind it, with distributions on a monthly cadence.
• Straight passive indexing of one named benchmark, the WisdomTree U.S. Quality Corporate Bond Index, with no manager discretion layered on top.

Worth knowing

• GIGB Cheap, but not the cheapest shelf: VCIT, USIG and SPIB run at 0.03% to 0.04%. You are paying a few basis points for the screening.
• Broad-maturity corporate credit moves on two levers, interest rates and credit spreads, so it swings more than short-dated bond funds.
• A mid-sized, moderately traded fund rather than a giant, so trading spreads can run wider than the largest names in the category.

• QIG A small fund that trades thinly, so spreads can run wider than the category heavyweights. Limit orders matter more here.
• Plain market-cap rivals like VCIT, USIG and SPIB charge 0.03% to 0.04%, so the quality tilt costs extra basis points versus the cheapest beta.
• Still corporate credit: values move with interest rates and credit spreads, and investment grade is a rating band, not a safety guarantee.

Full GIGB profile⁠

Full QIG profile⁠