Vanguard's VGSH or BSV: Which Short-Term Bond ETF Belongs in Your Portfolio Today?
Both funds charge the same rock-bottom fee and target short-term bonds. The difference comes down to how much credit risk you want in your portfolio.
Overview
Investors seeking pure government-backed safety may prefer Vanguard Short-Term Treasury ETF (NASDAQ:VGSH), while Vanguard Short-Term Bond ETF (NYSEMKT:BSV) looks attractive for those wanting broader credit exposure and a higher distribution yield.
Both funds serve as conservative building blocks for a fixed-income portfolio, focusing on the shorter end of the maturity curve. While they share an issuer and a low cost structure, their underlying security types and risk profiles differ enough to impact long-term portfolio stability and income.
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.
Related Articles
- Trump announces long-shot bid to get Supreme Court to rehear birthright citizenship case
- Vanguard Long-Term Treasury ETF vs iShares Corporate Bond ETF: Which Bond Fund Offers the Best Combination of Safety and Investment Returns?
- Did you mess up on your taxes? The IRS just made it easier to avoid paying a penalty.