Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBrendan Coffey, The Motley FoolFri, June 26, 2026 at 8:17 PM GMT+2 4 min readThe choice between Vanguard Total Bond Market ETF (NASDAQ:BND) and Fidelity Investment Grade Bond ETF (NYSEMKT:FIGB) hinges on a trade-off between the Vanguard fund's ultra-low costs and the Fidelity fund's higher trailing yield.Both funds provide core exposure to the U.S. investment-grade bond market, serving as potential ballast for diversified portfolios. While the Vanguard fund tracks a massive, broad-based index of taxable debt, the Fidelity fund offers a curated selection of highly rated instruments designed for stability and consistent income generation.Snapshot (cost & size)MetricFIGBBNDIssuerFidelityVanguardExpense ratio0.36%0.03%1-yr return (as of June 26, 2026)4.4%4.3%Dividend yield4.11%3.94%Beta0.250.25AUM$498.6 million$394.4 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield on June 26.The Vanguard fund is significantly more affordable for long-term investors, with an expense ratio of 0.03% compared to 0.36% for the Fidelity fund. However, the Fidelity fund provided a slightly higher payout over the trailing 12 months.Performance & risk comparisonMetricFIGBBNDMax drawdown (5 yr)(18.10%)(17.90%)Growth of $1,000 over 5 years (total return)$1,008$1,002What's insideVanguard Total Bond Market ETF provides extensive exposure to the domestic taxable fixed-income market through 11,455 holdings. That portfolio is highly diversified, so no single position exceeds 0.47% of its $394.4 billion in assets under management.Launched in 2007, the Vanguard fund has a trailing-12-month dividend of $2.90 per share and focuses on providing a reliable stream of income while cushioning against stock market volatility.Fidelity Investment Grade Bond ETF maintains a tighter portfolio of 857 holdings, primarily consisting of highly rated debt instruments and cash equivalents. Its largest sector holding is U.S. Treasuries, at 48.8% of the portfolio, followed by corporate bonds at 22.3%. Launched in 2021, the Fidelity fund has a trailing-12-month dividend of $1.76 per share.Which fund is the better buy?Bond funds are generally defensive holdings, providing investors with diversification and greater stability than stocks, which can be quite volatile.In that light, the Vanguard Total Bond ETF, BND, is appealing because of its lower maximum drawdown and lighter expense ratio compared to Fidelity's FIGB. BND is also more heavily invested in U.S. government issuers, at 69% of the portfolio, compared to 62% for the Fidelity Investment Grade Bond ETF. Those are superior defensive metrics for Vanguard.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info