iShares' IGLB or Vanguard's VGLT: Which Long-Term Bond ETF Should Investors Choose?
IGLB's diversified portfolio of 3,814 investment-grade securities delivered stronger returns and lower volatility, though VGLT offers slightly lower costs for risk-averse income seekers.
Overview
The iShares 10+ Year Investment Grade Corporate Bond ETF (NYSEMKT:IGLB) focuses on high-quality corporate debt, while the Vanguard Long-Term Treasury ETF (NASDAQ:VGLT) provides exposure to U.S. government bonds.
Fixed-income investors often look to the long end of the maturity spectrum to maximize yield or position for declining interest rates. This analysis compares two popular options that offer exposure to long-dated debt but differ significantly in their credit quality, risk profiles, and historical volatility.
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.