VGSH vs. SMB: A Comparison of Two Top Short-Term Bond ETFs
VGSH targets U.S. Treasuries with lower costs, while SMB offers municipal bonds for tax-exempt income. Which suits your portfolio?
Overview
The Vanguard Short-Term Treasury ETF (NASDAQ:VGSH) offers lower costs and higher historical yields, while the VanEck Short Muni ETF (NYSEMKT:SMB) provides tax-exempt income through short-duration municipal bonds for income-focused investors.
Both funds target the short end of the fixed-income curve to minimize interest rate risk. While VGSH tracks U.S. Treasuries, the VanEck fund focuses on the municipal market, offering potential tax advantages that may appeal to investors who are in higher tax brackets.
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.
Source
Originally published at www.fool.com.