IGSB vs. BSV: Should You Go All-In on Corporate Debt or Diversify With Government Bonds?
IGSB delivered 3.90% total return last year and offers 4.60% dividend yield through corporate debt. BSV prioritizes stability with broader government exposure and a slightly lower 0.03% expense ratio.
Overview
The iShares 1-5 Year Investment Grade Corporate Bond ETF (NASDAQ:IGSB) provides higher yield through corporate debt, while the Vanguard Short-Term Bond ETF (NYSEMKT:BSV) offers lower costs and broader government exposure.
Both funds target the short end of the yield curve, focusing on bond maturities between one and five years. While IGSB concentrates specifically on corporate issuers to maximize yield, BSV blends government and corporate debt to prioritize stability and liquidity for conservative portfolios.
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.
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Source
Originally published at www.fool.com.