Vanguard's VGSH or iShares' IGSB: Which Short-Term Bond ETF Belongs in Your Portfolio?
Compare cost, volatility, and portfolio makeup as you weigh safety against income potential in these two leading short-duration fixed income ETFs.
Overview
Investors choosing between Vanguard Short-Term Treasury ETF (NASDAQ:VGSH) and iShares 1-5 Year Investment Grade Corporate Bond ETF (NASDAQ:IGSB) weigh the safety of Treasuries against the higher yields of corporate credit.
Both ETFs provide exposure to high-quality, short-duration debt, making them common tools for dampening portfolio volatility. While VGSH limits itself to U.S. government securities, IGSB reaches for higher yields by holding debt from investment-grade corporations, leading to different risk-return profiles in fluctuating interest rate environments.
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.