Long Corporate Bond ETFs: IGLB Offers Broad Exposure While VCLT Is Slightly Cheaper
The iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB) and the Vanguard Long-Term Corporate Bond ETF (VCLT) both target long-maturity corporate debt. For investors comparing the two, the key question is how small differences in cost and construction stack up against the shared exposure to duration and credit-spread risk.
Long Corporate Bond ETFs: IGLB Offers Broad Exposure While VCLT Is Slightly Cheaper
Overview
The iShares 10+ Year Investment Grade Corporate Bond ETF (NYSEMKT:IGLB) and the Vanguard Long-Term Corporate Bond ETF (NASDAQ:VCLT) offer nearly identical long-term corporate bond exposure, differing primarily in yield and cost.
Both funds target the long end of the corporate credit curve, providing income through investment-grade debt. Investors often look to these ETFs for higher yields than government bonds, though they may accept greater sensitivity to interest rate shifts and corporate credit risk in exchange.
Details
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.
Source
Originally published at www.fool.com.
