IGSB vs SLQD

IGSBAiShares 1-5 Year Investment Grade Corporate Bond ETF

SLQDAiShares 0-5 Year Investment Grade Corporate Bond ETF

In short

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.

SLQD iShares' liquid investment-grade corporate universe, trimmed to bonds maturing inside five years, for 0.06% a year. You keep the corporate credit; you shed most of the long-bond rate swings.

Stated mandate

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.

SLQD The fund seeks to track an index of U.S. dollar-denominated, investment-grade corporate bonds with remaining maturities of less than five years.

Why people hold it

• 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.

• SLQD Charges 0.06% a year, under a third of the typical investment-grade corporate bond fund in its group.ishares.com
• Tracks an index of dollar-denominated investment-grade corporates maturing in under five years, screened for liquid issues. Credit stays on, duration comes off.ishares.com
• Thousands of bonds in one billion-dollar-plus wrapper, with income paid monthly.
• Running since 2013 and one of the stronger implementations in the investment-grade corporate group.

Worth knowing

• 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.

• SLQD The window starts at zero years, so it holds paper close to maturity and reacts less to rate moves than intermediate peers like VCIT or IGIB. That cuts both ways.
• This is corporate credit, not Treasuries. Short maturities soften rate risk, they do not remove issuer risk.
• Monthly payouts float with prevailing rates and the bonds rolling through the portfolio. No fixed coupon at the fund level.

Full IGSB profile⁠

Full SLQD profile⁠