Short-Term Income ETFs: How Do Vanguard Short-Term Bond ETF and Schwab Treasury ETF Compare?
Schwab's Treasury-only approach delivers lower volatility and drawdown, while Vanguard's corporate bond mix offers slightly higher yield and broader diversification.
Overview
Vanguard Short-Term Bond ETF (NYSEMKT:BSV) offers broader exposure to corporate debt and slightly longer maturities than Schwab Short-Term U.S. Treasury ETF (NYSEMKT:SCHO), resulting in a marginally higher yield alongside increased price volatility.
Conservative investors often turn to short-duration bonds for stability and steady income. While both funds target the short end of the yield curve, they differ in what they own. The Schwab fund focuses solely on Treasuries, while the Vanguard fund adds investment-grade corporate bonds for a more diverse portfolio.
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.