Average Daily Volume
3.87M
Fund Overview
The iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) seeks to track the investment results of an index composed of U.S. dollar-denominated investment-grade corporate bonds with remaining maturities between one and five years. The fund provides exposure to short-term corporate debt issued by financially stable companies, offering a balance of yield and lower interest rate risk compared to longer-duration bonds. IGSB is designed for investors seeking income with relatively lower volatility, making it a popular choice for conservative portfolios or as a cash alternative with better returns than traditional savings instruments.
- Asset Class
-
Bond
- Industry
-
Corporate Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 4.68 %
- Currency Hedged
-
No
- Portfolio Turnover
-
25 %
- Dividend Date
-
Why Invest in the IGSB ETF?
Potential Benefits
- Provides exposure to short-term investment-grade corporate bonds, offering higher yields than government securities with moderate credit risk.
- Lower interest rate sensitivity compared to longer-duration bond ETFs, reducing volatility in rising rate environments.
- Diversified portfolio of bonds from various sectors, mitigating issuer-specific risks.
- Liquidity advantage due to the ETF structure, allowing easy trading on major exchanges.
- Competitive expense ratio compared to actively managed short-term bond funds.
Potential Risks
- Credit risk: Bond issuers may default or be downgraded, impacting fund performance.
- Interest rate risk: While less sensitive than long-term bonds, short-term rates can still affect prices.
- Liquidity risk: Some holdings may become less liquid during market stress, potentially impacting NAV.
- Yield compression: In low-rate environments, yields may not keep pace with inflation.
- Sector concentration risk: Heavy exposure to financial services or other specific industries.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.4%
|
+0.6%
|
-0.9%
|
+0.4%
|
+0.3%
|
+0.1%
|
-0.1%
|
+0.2%
|
-1.3%
|
+0.1%
|
-
|
-
|
| 2025 |
+0.6%
|
+1.0%
|
+0.4%
|
+0.6%
|
+0.3%
|
+1.0%
|
+0.1%
|
+1.1%
|
+0.5%
|
+0.3%
|
+0.6%
|
+0.3%
|
| 2024 |
+0.4%
|
-0.5%
|
+0.7%
|
-0.6%
|
+1.0%
|
+0.5%
|
+1.6%
|
+1.2%
|
+1.0%
|
-0.9%
|
+0.6%
|
-0.2%
|
| 2023 |
+1.7%
|
-1.2%
|
+1.5%
|
+0.6%
|
-0.5%
|
-0.1%
|
+0.6%
|
+0.1%
|
-0.5%
|
0.0%
|
+2.3%
|
+1.8%
|
| 2022 |
-1.2%
|
-0.7%
|
-1.9%
|
-1.4%
|
+0.9%
|
-1.3%
|
+1.6%
|
-1.5%
|
-2.1%
|
-0.3%
|
+2.1%
|
+0.1%
|
| 2021 |
-0.1%
|
-0.3%
|
-0.2%
|
+0.4%
|
+0.3%
|
0.0%
|
+0.3%
|
0.0%
|
-0.2%
|
-0.5%
|
-0.3%
|
+0.1%
|
| 2020 |
+0.9%
|
+0.8%
|
-3.5%
|
+2.8%
|
+1.5%
|
+0.8%
|
+0.8%
|
+0.2%
|
-0.2%
|
+0.1%
|
+0.7%
|
+0.4%
|
| 2019 |
+1.3%
|
+0.4%
|
+1.1%
|
+0.3%
|
+0.7%
|
+1.0%
|
+0.1%
|
+1.0%
|
0.0%
|
+0.5%
|
+0.1%
|
+0.4%
|
| 2018 |
-0.2%
|
-0.3%
|
+0.1%
|
+0.1%
|
+0.3%
|
0.0%
|
+0.2%
|
+0.5%
|
-0.1%
|
-0.1%
|
0.0%
|
+0.8%
|
| 2017 |
+0.2%
|
+0.2%
|
+0.1%
|
+0.2%
|
+0.2%
|
0.0%
|
+0.3%
|
+0.2%
|
-0.1%
|
0.0%
|
-0.3%
|
0.0%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: IGSB vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
IGSB tracks the ICE 1-5 Year US Investment Grade Corporate Bond Index, which includes USD-denominated bonds rated Baa3/BBB- or higher by Moody's and S&P. The index is market-cap weighted, meaning larger issuers have greater representation. The fund holds physical bonds (not derivatives) and rebalances monthly to maintain target maturities. Holdings are primarily senior unsecured corporate notes from financial services, industrial, and utility companies. The 1-5 year duration focus provides a balance between yield pickup over Treasuries and limited interest rate sensitivity.
Frequently Asked Questions
What credit quality are IGSB's holdings?
IGSB holds bonds rated BBB- or higher by major rating agencies, all within the investment-grade category.
How often does IGSB pay dividends?
IGSB distributes income monthly, making it suitable for investors seeking regular cash flow.
Does IGSB hold bonds to maturity?
No, as an index ETF, IGSB continuously adjusts its holdings to maintain the target maturity range, selling bonds as they approach 1 year remaining.
How does IGSB compare to money market funds?
IGSB typically offers higher yields than money market funds but carries slightly more price volatility due to its longer duration and credit exposure.
What percentage of IGSB is in financial sector bonds?
As of recent holdings, financial institutions typically comprise 35-45% of IGSB's portfolio, reflecting their dominant position in corporate bond markets.
Industry Overview
The short-term investment grade corporate bond market, where IGSB operates, serves investors seeking higher yields than government securities while maintaining relatively lower duration risk. This segment has grown significantly as investors balance yield needs with interest rate sensitivity concerns. The iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) provides efficient access to this market, offering diversification across hundreds of issuers. The 1-5 year maturity sweet spot typically offers better yields than money market instruments while exhibiting less price volatility than longer-dated bonds during rate hike cycles.
Alternative Comparison
Compared to SLQD (which focuses on 0-5 year bonds with higher liquidity standards) and VCSH (which has a slightly longer 1-5 year duration like IGSB but uses a different index), IGSB offers a competitive middle ground with its pure 1-5 year maturity focus. While SLQD may be more liquid, IGSB typically offers slightly higher yields. Against SPSB (SPDR's equivalent), IGSB benefits from iShares' larger trading volume and tighter spreads. Unlike FLRN (which holds floating rate notes), IGSB's fixed-rate bonds offer more predictable income streams but greater sensitivity to rate changes.
Issuer Overview
iShares by BlackRock, the world's largest ETF provider, manages IGSB. With over $2 trillion in global ETF assets under management, iShares offers extensive fixed income expertise and scale advantages. BlackRock's bond index funds benefit from tight tracking, liquidity provision, and low-cost structures. The firm's institutional capabilities in credit analysis and trading execution help maintain tight bid-ask spreads for IGSB investors.
Conclusion
IGSB serves as a core holding for investors seeking short-duration corporate bond exposure with investment-grade credit quality. Its 1-5 year maturity focus positions it well for moderate yield seekers concerned about rising rates. While not completely risk-free, the ETF's diversified portfolio and BlackRock's stewardship make it a reliable vehicle for the short-term corporate bond allocation within a broader fixed income strategy.
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