Vanguard vs. Schwab Short-Term Treasury ETFs: Which One Delivers the Better Safe-Haven Return?
Both funds charge 0.03% and yield roughly 3.8%, but Vanguard manages $51.9 billion in assets versus Schwab's $15.3 billion. The choice hinges on issuer preference and account custodian.
Overview
The primary difference between the Vanguard Short-Term Treasury ETF (NASDAQ:VGSH) and the Schwab Short-Term U.S. Treasury ETF (NYSEMKT:SCHO) is their issuer, as both funds provide nearly identical exposure to short-duration government debt.
These two exchange-traded funds (ETFs) serve as defensive pillars for income-focused investors who prioritize capital preservation. By targeting U.S. Treasury notes with maturities of one to three years, they provide a reliable haven from stock market volatility while generating steady interest income with virtually zero credit risk from the federal government.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). 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.