Better Short-Term Bond ETF: Schwab's Treasury-Focused SCHO or VanEck's SMB Targeting Municipal Bonds
SCHO charges half VanEck's fee while delivering a 1.09 percentage point yield advantage and stronger five-year returns.
Overview
The Schwab Short-Term U.S. Treasury ETF (NYSEMKT:SCHO) provides lower management fees and a higher yield than the VanEck Short Muni ETF (NYSEMKT:SMB), though the latter may appeal to investors seeking tax-exempt income.
Investors seeking safety in short-duration fixed income often compare the stability of government-backed debt with the potential tax advantages of municipal bonds. While SMB targets the short-term municipal bond market, SCHO tracks U.S. Treasury securities with maturities between one and three years. This analysis examines their costs, yields, and historical risk profiles.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.