VTES vs. VGSH: Which Vanguard Bond ETF Is the Better Buy?
Compare risk profiles, tax advantages, and portfolio strategies between these two popular Vanguard funds.
VTES vs. VGSH: Which Vanguard Bond ETF Is the Better Buy?
Overview
The Vanguard Short-Term Tax-Exempt Bond ETF (NYSEMKT:VTES) provides income exempt from federal taxes, while the Vanguard Short-Term Treasury ETF (NASDAQ:VGSH) offers a slightly lower expense ratio and a higher yield backed by U.S. government debt.
Investors looking for stability often turn to short-term bond funds to preserve capital while generating income. While both of these Vanguard offerings focus on high-quality debt with limited duration, they serve different tax strategies and credit profiles, making the choice between them a matter of balancing yield against tax efficiency.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year 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.
