Vanguard's BSV or iShares' ISTB: Which Short-Term Bond ETF Should Long-Term Investors Choose?
Compare diversification, credit quality, and risk profiles to see which short-term bond ETF may better align with your investment strategy.
Vanguard's BSV or iShares' ISTB: Which Short-Term Bond ETF Should Long-Term Investors Choose?
Overview
While Vanguard Short-Term Bond ETF (NYSEMKT:BSV) offers a lower expense ratio and higher credit quality, iShares Core 1-5 Year USD Bond ETF (NASDAQ:ISTB) provides broader diversification and a slightly higher trailing yield.
Investors seeking to dampen portfolio volatility often look toward short-duration bonds, which are less sensitive to interest rate fluctuations than longer-term debt. The choice between them often hinges on whether an investor prefers the strict safety of government-backed debt or the extra income potential found in the broader corporate bond market.
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.
