IBDS vs. IG

Last updated Jun 24, 2026

IBDS (iShares iBonds Dec 2027 Term Corporate ETF) and IG (Principal Investment Grade Corporate Active ETF) are both Corporate Bonds funds. IBDS is passively managed, while IG is actively managed. A 0.52 correlation means they provide meaningful diversification when combined. IBDS charges 0.10%/yr vs 0.26%/yr for IG.

Performance

IBDS vs. IG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2027 Term Corporate ETF (IBDS) and Principal Investment Grade Corporate Active ETF (IG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

IBDS

• 1D: 0.08%
• 1M: 0.27%
• YTD: 1.40%
• 6M: 1.61%
• 1Y: 4.33%
• 3Y*: 5.41%
• 5Y*: 1.47%
• 10Y*: —

IG

• 1D: 0.15%
• 1M: 0.88%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

IBDS vs. IG - Yearly Performance Comparison

	2026 (YTD)
IBDS iShares iBonds Dec 2027 Term Corporate ETF	0.59%
IG Principal Investment Grade Corporate Active ETF	0.12%

Correlation

The correlation between IBDS and IG is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Apr 22, 2026	0.52

Return for Risk

IBDS vs. IG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IBDS

IBDS Risk / Return Rank: 97
IBDS Sharpe Ratio Rank: 97
IBDS Sortino Ratio Rank: 98
IBDS Omega Ratio Rank: 98
IBDS Calmar Ratio Rank: 97
IBDS Martin Ratio Rank: 98

IG

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IBDS vs. IG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2027 Term Corporate ETF (IBDS) and Principal Investment Grade Corporate Active ETF (IG). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	IBDS	IG	Difference
Sharpe ratio: Return per unit of total volatility	4.08	—	—
Sortino ratio: Return per unit of downside risk	7.85	—	—
Omega ratio: Gain probability vs. loss probability	2.08	—	—
Calmar ratio: Return relative to maximum drawdown	10.00	—	—
Martin ratio: Return relative to average drawdown	46.90	—	—

Drawdowns

IBDS vs. IG - Drawdown Comparison

The maximum IBDS drawdown since its inception was -16.75%, which is greater than IG's maximum drawdown of -1.75%. Use the drawdown chart below to compare losses from any high point for IBDS and IG.

Drawdown Indicators

	IBDS	IG	Difference
Max Drawdown Largest peak-to-trough decline	-16.75%	-1.75%	-15.00%
Max Drawdown (1Y) Largest decline over 1 year	-0.43%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-2.27%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-14.98%	—	—
Current Drawdown Current decline from peak	0.00%	-0.29%	+0.29%
Average Drawdown Average peak-to-trough decline	-3.34%	-0.45%	-2.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.09%	—	—

Volatility

Volatility by Period

	IBDS	IG	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.19%	—	—
Volatility (6M) Calculated over the trailing 6-month period	0.62%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.07%	4.81%	-3.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.17%	4.81%	-0.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.53%	4.81%	+0.72%

IBDS vs. IG - Expense Ratio Comparison

IBDS has a 0.10% expense ratio, which is lower than IG's 0.26% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IBDS vs. IG - Dividend Comparison

IBDS's dividend yield for the trailing twelve months is around 4.31%, more than IG's 0.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
IBDS iShares iBonds Dec 2027 Term Corporate ETF	4.31%	4.36%	4.37%	3.81%	2.87%	2.19%	2.66%	3.32%	3.66%	0.97%
IG Principal Investment Grade Corporate Active ETF	0.84%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IBDS and IG in my portfolio?

IBDS and IG have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, IBDS or IG?

On fees, IBDS is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, IBDS or IG?

IBDS is cheaper with a 0.10% expense ratio, compared with 0.26% for IG.

Which ETF pays a higher dividend yield, IBDS or IG?

IBDS has the higher dividend yield at 4.31%, compared with 0.84% for IG.

What is the main difference between IBDS and IG?

They also come from different issuers: iShares and Principal. Their fees differ too: 0.10% for IBDS and 0.26% for IG.