Better Short-Term Corporate Bond ETF: Vanguard's VCSH vs. the iShares IGSB
Both funds track investment-grade corporate debt maturing within five years, with VCSH charging 0.03% and IGSB at 0.04%.
Overview
The iShares 1-5 Year Investment Grade Corporate Bond ETF (NASDAQ:IGSB) and Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH) provide remarkably similar paths for investors seeking income from high-quality corporate debt with minimal interest rate risk.
These exchange-traded funds are staple choices for conservative investors who want to balance the relative safety of fixed income with higher potential returns than Treasury bills. By focusing on investment-grade corporate bonds that mature within a five-year window, they aim to provide steady income while mitigating the price sensitivity typically found in longer-duration bond portfolios.
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.