Vanguard Total Bond Market ETF Tops iShares 3-7 Year Treasury Bond ETF on Yield and Cost. Does That make BND a Buy?
Compare diversification, risk, and performance between these two leading fixed-income ETFs to see which may better suit your portfolio goals.
Overview
The Vanguard Total Bond Market ETF (NASDAQ:BND) offers lower costs and broader market coverage, while the iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) provides concentrated exposure to intermediate-term U.S. government debt.
While both ETFs provide stability for a diversified portfolio, they target different segments of the fixed-income world. The iShares fund focuses strictly on the intermediate-term Treasury curve, whereas BND captures the total taxable bond universe, including corporate and mortgage-backed securities, providing wider diversification for income-seeking investors.
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 based on the closing price of June 26.
Source
Originally published at www.fool.com.