VTES vs. VCSH: Which Vanguard Bond ETF Is the Better Fit for Your Portfolio?
Explore how these two funds differ in risk, holdings, and income profile to help align your fixed-income strategy with your financial goals.
Overview
Investors choosing between the Vanguard Short-Term Tax-Exempt Bond ETF (NYSEMKT:VTES) and the Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH) must weigh the benefits of federally tax-free municipal income against the higher yields offered by taxable corporate debt.
Vanguard manages both funds and serves as a low-cost tool for short-term income. While both focus on high-quality debt with limited interest-rate sensitivity, the primary distinction lies in the underlying credit profile and the tax treatment of the interest income for shareholders.
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.