iShares' IGIB or MUB: Which Bond ETF Keeps More Money in Your Pocket?
Corporate bonds yield more, but municipal bonds hold up better and deliver tax-free income. The right choice depends on your tax bracket.
Overview
The iShares 5-10 Year Investment Grade Corporate Bond ETF (NASDAQ:IGIB) provides exposure to corporate debt with a higher yield, while the iShares National Muni Bond ETF (NYSEMKT:MUB) focuses on high-quality municipal bonds.
Investors seeking fixed-income stability may weigh the higher yields of corporate bonds against the potential tax benefits of municipal debt. This comparison explores how these two iShares funds differ in cost, volatility, and income generation for conservative portfolios looking to balance risk and return in a changing interest rate environment.
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.