IGSB vs. VGSH: Short-Term Bond ETF Showdown for Income Investors
Compare risk, yield, and portfolio makeup as two leading short-term bond ETFs take different approaches to income and stability.
IGSB vs. VGSH: Short-Term Bond ETF Showdown for Income Investors
Overview
The iShares 1-5 Year Investment Grade Corporate Bond ETF (NASDAQ:IGSB) offers higher income potential, while the Vanguard Short-Term Treasury ETF (NASDAQ:VGSH) provides greater capital preservation and slightly lower fees.
Both funds serve as conservative building blocks for a fixed-income portfolio, targeting maturities in the one- to five-year range. However, they differ significantly in credit quality. The iShares fund focuses on investment-grade corporate debt, whereas the Vanguard fund concentrates on the safety of U.S. Treasury securities.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. 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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Originally published at www.fool.com.
