Vanguard ETF Tops iShares Peer in Yield and Cost Efficiency
Compare maturity ranges, asset sizes, and risk profiles as two leading Treasury ETFs take different approaches to balancing safety and returns.
Vanguard ETF Tops iShares Peer in Yield and Cost Efficiency
Overview
The Vanguard Intermediate-Term Treasury ETF (NASDAQ:VGIT) and the iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) Both offer high-quality government bond exposure, but VGIT carries a lower cost and slightly longer maturity profile.
Investors seeking a haven often turn to intermediate U.S. Treasuries to balance yield and interest rate risk. By focusing on the middle of the yield curve, these ETFs aim to provide higher returns than cash-like instruments while avoiding the volatility of long-term Treasury bonds. While both funds hold government-backed debt, IEI targets a tighter three- to seven-year window, whereas VGIT extends its reach to 10 years.
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.
