VCSH vs ISTB: Which Short-Term Bond ETF Wins?
Vanguard's lower costs and higher yield appeal to income seekers, while iShares offers broader diversification across treasuries and corporate debt. Both funds carry similar downside risk.
Overview
The Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH) provides concentrated, lower-cost exposure to short-dated corporate credit, while the iShares Core 1-5 Year USD Bond ETF (NASDAQ:ISTB) offers broader market coverage across the treasury and corporate debt markets.
Investors seeking to balance income with capital preservation often look to the short end of the bond market. Both VCSH and ISTB manage interest rate risk by holding debt with maturities under five years. The iShares fund tracks the Bloomberg U.S. Universal 1-5 Year Index, which includes a broader spectrum of credit than the corporate-only indexes often used by its peers.
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.
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