Fidelity's FIGB Bond ETF Charges 12 Times the Expenses of Vanguard's VGIT

Investors in the Fidelity Investment Grade Bond ETF (FIGB) pay an annual expense ratio of 0.36%, compared to 0.03% for the Vanguard Intermediate-Term Treasury ETF (VGIT). This cost gap is driven by FIGB's status as an actively-managed fund that holds a broader range of bonds, including corporate debt. By contrast, VGIT is a passively-managed fund with a 100% allocation to government debt. FIGB offers a higher dividend yield of 4.1% against VGIT's 3.8%. The broader bond mix and active management in FIGB result in a higher risk profile, as shown by a five-year maximum drawdown of -18.06%, while VGIT's drawdown was -15.03%.