Bond Face-Off: Vanguard Total Bond Market ETF vs. iShares Treasury Bond ETF
Vanguard's broader portfolio costs less to own and yields more, but iShares' focused Treasury approach delivers lower volatility and smaller drawdowns.
Overview
Vanguard Total Bond Market ETF (NASDAQ:BND) provides broader fixed-income exposure and lower costs compared to the iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI), which focuses exclusively on intermediate U.S. Treasuries.
These two exchange-traded funds (ETFs) serve as foundational building blocks for income-seeking portfolios. While iShares 3-7 Year Treasury Bond ETF targets a specific slice of the government bond market with shorter durations, Vanguard Total Bond Market ETF casts a much wider net across the entire taxable U.S. investment-grade universe.
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-yr 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.