Vanguard ETF Tops iShares Muni Bond on Yield and Cost
These two leading bond ETFs take different approaches to balancing stability and returns.
Vanguard ETF Tops iShares Muni Bond on Yield and Cost
Overview
The iShares National Muni Bond ETF (NYSEMKT:MUB) provides tax-exempt income through high-quality municipal bonds, while the Vanguard Intermediate-Term Treasury ETF (NASDAQ:VGIT) offers lower costs and government-backed security through intermediate-term U.S. Treasuries.
Bond investors often look to intermediate-term debt for a balance between income and price stability. While both funds target high-quality fixed income, MUB focuses on the tax-exempt municipal market, while VGIT provides the safety of the federal government. This comparison examines differences in cost, performance, and portfolio composition to help you determine which strategy best fits your financial goals.
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.
