IGEB vs. BAB
Compare and contrast key facts about iShares Investment Grade Bond Factor ETF (IGEB) and Invesco Taxable Municipal Bond ETF (BAB).
IGEB and BAB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IGEB is a passively managed fund by iShares that tracks the performance of the BlackRock Investment Grade Enhanced Bond Index. It was launched on Jul 11, 2017. BAB is a passively managed fund by Invesco that tracks the performance of the BofA Merrill Lynch Build America Bond Index. It was launched on Nov 17, 2009. Both IGEB and BAB are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IGEB or BAB.
Key characteristics
| IGEB | BAB | |
|---|---|---|
| YTD Return | 4.10% | 2.65% |
| 1Y Return | 12.08% | 10.38% |
| 3Y Return (Ann) | -0.99% | -3.40% |
| 5Y Return (Ann) | 1.64% | -0.16% |
| Sharpe Ratio | 2.13 | 1.36 |
| Sortino Ratio | 3.23 | 2.04 |
| Omega Ratio | 1.38 | 1.25 |
| Calmar Ratio | 0.84 | 0.54 |
| Martin Ratio | 9.47 | 4.85 |
| Ulcer Index | 1.32% | 2.21% |
| Daily Std Dev | 5.86% | 7.88% |
| Max Drawdown | -21.13% | -27.80% |
| Current Drawdown | -4.58% | -11.58% |
Correlation
The correlation between IGEB and BAB is 0.72, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
IGEB vs. BAB - Performance Comparison
In the year-to-date period, IGEB achieves a 4.10% return, which is significantly higher than BAB's 2.65% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IGEB vs. BAB - Expense Ratio Comparison
IGEB has a 0.18% expense ratio, which is lower than BAB's 0.28% expense ratio.
Risk-Adjusted Performance
IGEB vs. BAB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Investment Grade Bond Factor ETF (IGEB) and Invesco Taxable Municipal Bond ETF (BAB). 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.
Dividends
IGEB vs. BAB - Dividend Comparison
IGEB's dividend yield for the trailing twelve months is around 4.84%, more than BAB's 3.85% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IGEB iShares Investment Grade Bond Factor ETF | 4.84% | 4.60% | 3.63% | 3.84% | 3.77% | 5.61% | 3.59% | 1.61% | 0.00% | 0.00% | 0.00% | 0.00% |
BAB Invesco Taxable Municipal Bond ETF | 3.85% | 3.66% | 3.40% | 2.63% | 2.96% | 3.77% | 4.20% | 3.96% | 4.27% | 4.71% | 4.59% | 5.19% |
Drawdowns
IGEB vs. BAB - Drawdown Comparison
The maximum IGEB drawdown since its inception was -21.13%, smaller than the maximum BAB drawdown of -27.80%. Use the drawdown chart below to compare losses from any high point for IGEB and BAB. For additional features, visit the drawdowns tool.
Volatility
IGEB vs. BAB - Volatility Comparison
iShares Investment Grade Bond Factor ETF (IGEB) and Invesco Taxable Municipal Bond ETF (BAB) have volatilities of 1.86% and 1.85%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.