BAB vs. IGEB
BAB (Invesco Taxable Municipal Bond ETF) and IGEB (iShares Investment Grade Bond Factor ETF) are both exchange-traded funds - BAB is a Municipal Bonds fund tracking the BofA Merrill Lynch Build America Bond Index, while IGEB is a Corporate Bonds fund tracking the BlackRock Investment Grade Enhanced Bond Index. Both are passively managed. Over the past 5 years, BAB returned -0.38%/yr vs 1.10%/yr for IGEB. A 0.73 correlation means they provide meaningful diversification when combined. BAB charges 0.28%/yr vs 0.18%/yr for IGEB.
Performance
BAB vs. IGEB - Performance Comparison
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Returns By Period
In the year-to-date period, BAB achieves a 0.12% return, which is significantly lower than IGEB's 0.41% return.
BAB
- 1D
- 0.00%
- 1M
- 0.33%
- YTD
- 0.12%
- 6M
- -0.01%
- 1Y
- 7.16%
- 3Y*
- 4.42%
- 5Y*
- -0.38%
- 10Y*
- 2.24%
IGEB
- 1D
- -0.22%
- 1M
- 0.57%
- YTD
- 0.41%
- 6M
- 0.32%
- 1Y
- 5.98%
- 3Y*
- 5.88%
- 5Y*
- 1.10%
- 10Y*
- —
BAB vs. IGEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 0.12% | 8.30% | 1.03% | 8.67% | -19.50% | 1.00% | 9.11% | 10.85% | 0.93% | 4.42% |
IGEB iShares Investment Grade Bond Factor ETF | 0.41% | 8.17% | 3.10% | 9.56% | -14.85% | -1.14% | 11.23% | 15.42% | -2.05% | 1.53% |
Correlation
The correlation between BAB and IGEB is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.76 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.82 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.83 |
Correlation (All Time) Calculated using the full available price history since Jul 14, 2017 | 0.73 |
The correlation between BAB and IGEB shifts across timeframes, from 0.73 (all time) to 0.83 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
BAB vs. IGEB — Risk / Return Rank
BAB
IGEB
BAB vs. IGEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Taxable Municipal Bond ETF (BAB) and iShares Investment Grade Bond Factor ETF (IGEB). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| BAB | IGEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.20 | ||
| Sortino ratioReturn per unit of downside risk | -0.21 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.25 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.73 | 2.08 | -0.35 |
| Martin ratioReturn relative to average drawdown | 4.93 | 6.81 | -1.88 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| BAB | IGEB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.24 | 1.44 | -0.20 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.05 | 0.17 | -0.21 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.52 | 0.49 | +0.03 |
Drawdowns
BAB vs. IGEB - Drawdown Comparison
The maximum BAB drawdown since its inception was -27.80%, which is greater than IGEB's maximum drawdown of -21.13%. Use the drawdown chart below to compare losses from any high point for BAB and IGEB.
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Drawdown Indicators
| BAB | IGEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.80% | -21.13% | -6.67% |
Max Drawdown (1Y)Largest decline over 1 year | -4.15% | -2.88% | -1.27% |
Max Drawdown (3Y)Largest decline over 3 years | -7.57% | -5.97% | -1.60% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -21.13% | -3.82% |
Max Drawdown (10Y)Largest decline over 10 years | -27.80% | — | — |
Current DrawdownCurrent decline from peak | -5.64% | -1.03% | -4.61% |
Average DrawdownAverage peak-to-trough decline | -5.31% | -4.90% | -0.41% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.46% | 0.88% | +0.58% |
Volatility
BAB vs. IGEB - Volatility Comparison
Invesco Taxable Municipal Bond ETF (BAB) has a higher volatility of 1.72% compared to iShares Investment Grade Bond Factor ETF (IGEB) at 1.33%. This indicates that BAB's price experiences larger fluctuations and is considered to be riskier than IGEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BAB | IGEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.72% | 1.33% | +0.39% |
Volatility (6M)Calculated over the trailing 6-month period | 3.78% | 3.07% | +0.71% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.80% | 4.16% | +1.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.33% | 6.70% | +1.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.69% | 6.52% | +3.17% |
BAB vs. IGEB - Expense Ratio Comparison
BAB has a 0.28% expense ratio, which is higher than IGEB's 0.18% expense ratio.
Dividends
BAB vs. IGEB - Dividend Comparison
BAB's dividend yield for the trailing twelve months is around 4.10%, less than IGEB's 5.06% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 4.10% | 3.96% | 3.97% | 3.65% | 3.40% | 2.63% | 2.96% | 3.77% | 4.20% | 3.96% | 4.26% | 4.71% |
IGEB iShares Investment Grade Bond Factor ETF | 5.06% | 4.92% | 5.09% | 4.60% | 3.64% | 3.84% | 3.78% | 5.61% | 3.59% | 1.62% | 0.00% | 0.00% |
Frequently Asked Questions
BAB and IGEB have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BAB has higher volatility (1.72%) compared to IGEB (1.33%). In terms of maximum drawdown, BAB dropped -27.80% vs IGEB's -21.13%.
On 5-year performance, IGEB leads with 1.10% vs -0.38% for BAB. On fees, IGEB is cheaper at 0.18% per year. On volatility, IGEB has been the lower-risk option at 1.33%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, IGEB has performed better with a 1.10% return vs -0.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IGEB is cheaper with a 0.18% expense ratio, compared with 0.28% for BAB.
IGEB has the higher dividend yield at 5.06%, compared with 4.10% for BAB.
BAB is categorized as Municipal Bonds, while IGEB is Corporate Bonds. BAB tracks BofA Merrill Lynch Build America Bond Index, while IGEB tracks BlackRock Investment Grade Enhanced Bond Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.28% for BAB and 0.18% for IGEB.
IGEB currently has the higher Sharpe Ratio (1.44 vs 1.24), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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