VCSH vs. VTES: Higher Yield or Tax-Free Income?
VCSH offers a 4.6% yield and lower expense ratio, while VTES provides federally tax-free income for conservative investors seeking stable returns.
Overview
Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH) provides taxable high-quality debt exposure, while Vanguard Short-Term Tax-Exempt Bond ETF (NYSEMKT:VTES) focuses on federally tax-free municipal income for conservative investors.
Investors often use short-term bond funds like these to park cash or stabilize a portfolio while earning income. This comparison evaluates how a tax-advantaged municipal strategy from Vanguard matches up against a higher-yielding corporate alternative during periods of interest rate shifts and economic uncertainty.
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.