Which Bond ETF Is the Better Buy: iShares' MUB or Vanguard's VGIT?
Compare tax advantages, risk profiles, and portfolio strategies as these two bond ETFs take different paths to income and stability.
Which Bond ETF Is the Better Buy: iShares' MUB or Vanguard's VGIT?
Overview
Investors evaluating iShares National Muni Bond ETF (NYSEMKT:MUB) against Vanguard Intermediate-Term Treasury ETF (NASDAQ:VGIT) are essentially weighing the federal tax advantages of municipal income against the government-backed credit security of U.S. Treasuries.
MUB focuses on high-quality municipal bonds, providing a strategy that is often favored by those in higher tax brackets seeking federal tax-exempt income. VGIT tracks intermediate-term U.S. Treasury notes, offering government-backed credit quality and a moderate sensitivity to interest rates with maturities typically ranging between three -- 10 years.
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.
