Vanguard Total Bond or Fidelity Investment Grade Bond: Which U.S. Bond ETF Offers Better Value
Compare portfolio concentration, yield focus, and diversification as you weigh these two core bond ETFs for your fixed-income allocation.
Overview
The choice between Vanguard Total Bond Market ETF (NASDAQ:BND) and Fidelity Investment Grade Bond ETF (NYSEMKT:FIGB) hinges on a trade-off between the Vanguard fund's ultra-low costs and the Fidelity fund's higher trailing yield.
Both funds provide core exposure to the U.S. investment-grade bond market, serving as potential ballast for diversified portfolios. While the Vanguard fund tracks a massive, broad-based index of taxable debt, the Fidelity fund offers a curated selection of highly rated instruments designed for stability and consistent income generation.
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 on June 26.
Source
Originally published at www.fool.com.