At a glance
IGSB charges 0.04% a year, below the 0.16% average of the 7 funds most like it (the 3rd cheapest of 8). It has $23.46B in assets, the 4th largest of that group; it paid 4.67% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.5% with distributions reinvested, 4th of those 8 funds; over three years it returned +5.4% a year. At its worst it fell 13.4% in the 2020 crash (S&P 500: 33.7%) and 7.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 15 months after the lows. Its ten largest positions make up 1.5% of the fund, out of 4,722 in all.
The short version
The iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) tracks the ICE BofA 1-5 Year US Corporate Index. It holds investment-grade (higher-rated) company bonds that mature in one to five years. Its 0.04% expense ratio is a quarter of the 0.16% average among similar funds. Its short maturities have limited losses: its worst calendar year was a 5.71% loss in 2022. It pays income monthly.
Price history
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IGSB +1.5% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IGSB official prospectus, to Dec 31, 2025 | — | +6.92% | — | +2.33% | +2.83% | — |
| ICE BofA US Broad Market Index index, same period | — | +7.15% | — | -0.42% | +2.01% | — |
| ICE Bof A15Year US Corporate Index index, same period | — | +6.80% | — | +2.24% | +2.92% | — |
| IGSB price data to Nov 2, 2026 | +0.6% | +1.5% | +5.4% | +2.5% | +2.7% | +2.3% |
- Over the year to Nov 2, 2026, IGSB returned +1.5%, 4th of 8 among similar funds.
- Its 5-year annualized return was +2.5% and its 10-year +2.7%.
- In the 2020 COVID crash it fell 13.4% and regained its old high 2.3 months after the low.
- Its worst full calendar year was 2022 (-5.7%); its best was 2019 (+7.1%).
- The deepest fall in its price history was 13.4% (Mar 4, 2020 to Mar 19, 2020), recovered by May 28, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.6% | — |
| 2025 | +6.9% | +6.92% |
| 2024 | +5.0% | +5.11% |
| 2023 | +6.3% | +6.42% |
| 2022 | -5.7% | -5.71% |
| 2021 | -0.5% | -0.49% |
| 2020 | +5.4% | +5.26% |
| 2019 | +7.1% | +7.01% |
| 2018 | +1.3% | +1.34% |
| 2017 | +1.3% | +1.41% |
| 2016 | +1.8% | +1.77% |
| 2015 | +0.6% | — |
| 2014 | +0.4% | — |
| 2013 | +0.6% | — |
| 2012 | +2.0% | — |
| 2011 | +0.9% | — |
| 2010 | +1.6% | — |
| 2009 | +5.1% | — |
| 2008 | +1.8% | — |
| 2007 | +3.2% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Gained 0.3% over that stretch · deepest drop along the way 11.6%, back to its old high 7 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 7.1% over that stretch · deepest drop along the way 13.4%, back to its old high 2.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 7.6% over that stretch · deepest drop along the way 7.8%, back to its old high 14.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.7996 | |
| 2025 | $2.3300 | +12.6% |
| 2024 | $2.0700 | +25.5% |
| 2023 | $1.6500 | +61.8% |
| 2022 | $1.0200 | +2.0% |
| 2021 | $1.0000 | -23.7% |
| 2020 | $1.3100 | -19.6% |
| 2019 | $1.6300 | +28.3% |
| 2018 | $1.2700 | +47.7% |
| 2017 | $0.8600 | +12.4% |
| 2016 | $0.7650 | +23.4% |
| 2015 | $0.6200 | +66.6% |
| 2014 | $0.3722 | +20.9% |
| 2013 | $0.3078 | -25.3% |
| 2012 | $0.4121 | -16.9% |
| 2011 | $0.4959 | -24.6% |
| 2010 | $0.6576 | -32.2% |
| 2009 | $0.9693 | -2.2% |
| 2008 | $0.9913 | -15.3% |
| 2007 | $1.1702 |
What's inside
As of Aug 31, 2026, the fund held 4,722 securities; the ten largest made up 1.48% of assets, and 6.67% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| EAGLE FUNDING LUXCO SARL Bonds and notes | 0.29% | |
| T-MOBILE USA INC Bonds and notes | 0.17% | |
| SPACE EXPLORATION TECH Bonds and notes | 0.15% | |
| BANK OF AMERICA CORP Bonds and notes | 0.14% | |
| AMAZON.COM INC Bonds and notes | 0.13% | |
| ABBVIE INC Bonds and notes | 0.13% | |
| MARS INC Bonds and notes | 0.12% | |
| CVS HEALTH CORP Bonds and notes | 0.12% | |
| AMAZON.COM INC Bonds and notes | 0.12% | |
| NVIDIA CORP Bonds and notes | 0.11% | |
| BOEING CO Bonds and notes | 0.11% | |
| GOLDMAN SACHS GROUP INC Bonds and notes | 0.11% | |
| BANK OF AMERICA CORP Bonds and notes | 0.11% | |
| SALESFORCE INC Bonds and notes | 0.11% | |
| PFIZER INVESTMENT ENTER Bonds and notes | 0.11% |
By country
United States 72.06%United Kingdom 4.65%Canada 3.56%Japan 3.06%France 2.2%By issuer
Companies 94.96%Other 3.34%Foreign governments 0.51%US government agencies 0.01%The bonds mature in 3.7 years on average (weighted by size), with an average coupon of 4.35%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $1.61B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.14%, -0.13%, +0.28%.
How it works
The fund tracks the ICE BofA 1-5 Year US Corporate Index. A bond qualifies if it pays a fixed interest rate in U.S. dollars, has at least $250 million outstanding and has one to five years left until it matures. It must be investment grade, the higher-quality tier of credit ratings. That means an average rating of BBB or better (Baa on Moody's scale) from Fitch, Moody's and S&P. Defaulted, equity-linked and municipal bonds are excluded.
Bonds are weighted by market value, so companies with more debt outstanding carry more weight. The index is updated on the last calendar day of each month, and bonds with less than a year left drop out then. As of February 28, 2026, it held 4,553 bonds, with a significant share from financial companies. The fund doesn't have to own them all. BlackRock uses representative sampling: it holds a sample that matches the index's credit quality, yield, sector mix and duration (sensitivity to interest rates). At least 80% of assets must be in index bonds.
Unlike a single bond, the fund never matures. It keeps rolling into new bonds, so it has no repayment date. It does not move to cash when markets fall. It may also lend up to one-third of its assets to borrowers for a fee.
What it really costs
- IGSB charges 0.04% a year, versus an average of 0.16% for the similar funds below (3rd of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $4 in the first year and $51 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IGSB | $4 | $13 | $23 | $51 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its short-maturity, investment-grade bonds have kept losses modest, with a worst calendar year of -5.71% in 2022, and it pays income monthly.
IGSB could act as a steadier, income-paying reserve alongside stocks. It pays monthly, and its income over the 12 months to October 29, 2026, equaled 4.65% of its price. It charges 0.04% a year. Across the stock market's 2007–2009 slide it gained 0.3%, though it fell 11.6% in late 2008 before recovering by May 2009. It recovered from its deepest drop, 13.4% in March 2020, in about two months. The 2022 bear market hurt longer: a 7.8% decline took about 15 months to recover, and 2022 was its worst calendar year, down 5.71%.
Taking money out during a sharp drop like March 2020 would have locked in a loss, though each of these recoveries took 15 months or less. These are company bonds, so fears of defaults can push prices down too. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want short-term corporate bonds cheaply: the 0.04% expense ratio is a quarter of the 0.16% average among similar funds.
- Retirees wanting monthly income with limited swings: it yielded 4.65% over the 12 months to October 29, 2026; its worst calendar year lost 5.71%.
- Investors wanting wide spread across issuers: over 4,700 holdings, with the 10 largest just 1.48% of assets as of August 31, 2026.
Look elsewhere if
- Investors wanting government-backed safety: about 95% of assets were company bonds as of August 31, 2026, which can drop on default fears.
- Savers who can't accept any dip: it fell 13.4% in March 2020, and its 2022 decline took about 15 months to recover.
- Investors seeking long-term growth: its average annual return was 2.83% over the 10 years through December 31, 2025.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| IGSB this fund | 3.7 yrs | 0.04% | $23.46B | +1.5% | +5.4% |
| FSIG First Trust Limited Duration Investment Gra… | 3.8 yrs | 0.55% | $1.51B | +1.1% | +5.2% |
| VCSH Vanguard Short-Term Corporate Bond ETF | 3.5 yrs | 0.03% | $51.74B | +1.9% | +5.7% |
| SLQD iShares 0-5 Year Investment Grade Corporate… | 2.6 yrs | 0.06% | $2.38B | +1.9% | +5.3% |
| PFIG Invesco Fundamental Investment Grade Corpor… | 4.9 yrs | 0.22% | $123.9M | -0.2% | +5.7% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
| IGIB iShares 5-10 Year Investment Grade Corporat… | 8.3 yrs | 0.04% | $18.72B | -1.0% | +6.4% |
| VCIT Vanguard Intermediate-Term Corporate Bond E… | 8.2 yrs | 0.03% | $72.04B | -0.6% | +7.1% |
Questions investors ask
Is IGSB safe for retirement savings?
It is lower risk than stocks, but not risk-free. Its bonds are investment grade and mature in one to five years, which has kept swings small: its worst calendar year was 2022, down 5.71%. Still, it fell 13.4% in about two weeks in March 2020 before recovering by late May. And these are company bonds, not U.S. government bonds, so fears of defaults can push prices down. Past results don't guarantee future ones.
What's the difference between IGSB and VCSH?
Very little. Both hold short-term corporate bonds, and their returns matched through October 29, 2026: 1.7% over one year and 5.6% a year over three. Vanguard's VCSH charges 0.03% a year versus IGSB's 0.04%. VCSH is also larger, with $51.7 billion in net assets against IGSB's $23.5 billion as of August 31, 2026. VCSH's average maturity is slightly shorter, 3.5 years versus 3.7. Both cost far less than the 0.16% average for similar funds.
Does IGSB pay monthly dividends?
Yes. IGSB pays distributions every month, funded by interest from its bonds. Over the 12 months to October 29, 2026, it paid about $2.40 per share, a trailing yield of 4.65%. Its bonds' average coupon, or stated interest rate, was 4.35% as of August 31, 2026. Payments can shrink. If rates fall, bonds that mature or are called (repaid early) get replaced with lower-yielding ones, a risk the prospectus flags.
What happens to IGSB when interest rates rise?
Its price usually falls, but less than funds holding longer-term bonds. Bond prices move opposite to interest rates, and the longer a bond has until maturity, the bigger the move. IGSB's bonds averaged 3.7 years to maturity as of August 31, 2026, versus 8.3 years for the iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB). Its worst quarter was the first quarter of 2022, down 3.82%. Over time, higher rates also let it reinvest maturing bonds at higher yields, lifting income.
What are IGSB's top holdings?
As of August 31, 2026, its largest positions were bonds from Eagle Funding Luxco Sarl (0.29% of assets), T-Mobile USA (0.17%), Space Exploration Technologies (0.15%), Bank of America (0.14%) and Amazon (0.13%). No single bond dominates: the 10 largest of more than 4,700 positions made up just 1.48% of assets. About 72% came from U.S. issuers, followed by the U.K., Canada and Japan. The index leaned toward financial companies as of February 28, 2026.