Vanguard Long-Term Treasury ETF vs iShares Corporate Bond ETF: Which Bond Fund Offers the Best Combination of Safety and Investment Returns?
LQD outperformed VGLT by 32% over five years, but VGLT's ultra-low 0.03% expense ratio and government backing appeal to risk-averse investors.
Overview
The iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEMKT:LQD) offers exposure to high-quality corporate credit risk, whereas the Vanguard Long-Term Treasury ETF (NASDAQ:VGLT) prioritizes long-dated government debt with lower annual fees.
Both funds are designed to provide steady income and act as stabilizers within a diversified portfolio. While the iShares fund focuses on the credit-worthiness of top-tier corporations, the Vanguard ETF serves as a pure-play on interest-rate sensitivity and the safety of U.S. government obligations. With assets under management (AUM) of $34.8 billion and $14.8 billion, respectively, both funds offer deep liquidity for long-term allocators and active traders alike.
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.