Which Is the Better Short-Term Bond ETF for Tax-Conscious Investors: iShares' ISTB or Vanguard's VTES?
ISTB delivers higher yields and stronger 3-year growth, while VTES offers tax-exempt municipal exposure with a lower expense ratio. Which suits your portfolio?
Overview
iShares Core 1-5 Year USD Bond ETF (NASDAQ:ISTB) offers broad exposure to taxable short-term debt, while Vanguard Short-Term Tax-Exempt Bond ETF (NYSEMKT:VTES) focuses on municipal securities designed for federal tax efficiency.
Fixed-income investors must often choose between the stability of short-term taxable debt and the potential tax advantages of municipal bonds -- a decision that often hinges on an individual investor's tax bracket. This analysis compares a broad taxable bond fund against a municipal-focused alternative to determine which may better suit your goals.
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.