SPLB vs. SCHQ: Which Long-Term Bond ETF Is the Better Buy for Investors?
Explore how these two funds differ in credit quality, diversification, and income potential for long-term bond investors.
SPLB vs. SCHQ: Which Long-Term Bond ETF Is the Better Buy for Investors?
Overview
Comparing the State Street SPDR Portfolio Long Term Corporate Bond ETF (NYSEMKT:SPLB) and the Schwab Long-Term U.S. Treasury ETF (NYSEMKT:SCHQ) highlights a classic fixed-income trade-off: the higher yield that comes with corporate credit risk vs. the lower default risk of long-term government debt.
Both funds target the long end of the maturity curve, but they look for yield in different places. While SPLB tracks investment-grade corporate debt, SCHQ focuses exclusively on U.S. Treasury securities. That fundamental difference in credit quality shapes their risk profiles and income potential.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year 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.
