IGLB vs SCHQ: Corporate Bonds Beat Treasuries on Yield and Trailing Returns
IGLB's 5.40% dividend yield and stronger 5-year performance make it compelling for income investors seeking long-duration exposure.
Overview
Comparing the iShares 10+ Year Investment Grade Corporate Bond ETF (NYSEMKT:IGLB) and the Schwab Long-Term U.S. Treasury ETF (NYSEMKT:SCHQ) reveals distinct paths for long-duration exposure, contrasting corporate credit risk against government-backed security.
Both funds target the long end of the yield curve, but they serve different roles in a portfolio. While the iShares fund tracks investment-grade corporate debt to offer a yield premium, the Schwab fund focuses exclusively on U.S. Treasuries, representing the long-duration segment of the government bond market.
Details
The Schwab fund is slightly more affordable with a 0.03% expense ratio. However, investors may prefer the iShares fund for its higher payout, as it currently offers a yield advantage of approximately 0.6 percentage points.
Source
Originally published at www.fool.com.