Vanguard's VCIT or Fidelity's FIGB: Which Bond ETF Is the Better Buy Right Now?
Explore how each fund's unique approach to portfolio construction and risk management could impact your fixed income strategy.
Vanguard's VCIT or Fidelity's FIGB: Which Bond ETF Is the Better Buy Right Now?
Overview
Deciding between Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT) and Fidelity Investment Grade Bond ETF (NYSEMKT:FIGB) involves weighing the advantages of Vanguard's exceptionally low costs against Fidelity's lower volatility profile.
Both ETFs provide exposure to high-quality debt, but they serve different roles in a fixed income portfolio. While VCIT targets a specific five- to 10-year maturity range for corporate bonds, FIGB offers a broader, multi-sector approach to the investment-grade market, including government debt issues. This comparison explores how these two funds approach the fixed income market, providing investors with different levels of yield, expense, and price sensitivity.
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.
