Which Is the Better Short-Term Bond ETF, Vanguard's VTES or VanEck's SMB?
VTES holds 3,373 securities with a 0.05% expense ratio, while SMB tracks a narrower index with 335 holdings and a 2.8% yield.
Overview
The VanEck Short Muni ETF (NYSEMKT:SMB) and Vanguard Short-Term Tax-Exempt Bond ETF (NYSEMKT:VTES) both target the short-end of the municipal bond market, offering federal tax-exempt income with low volatility.
Investors seeking to park cash in a tax-advantaged way often look to short-duration municipal bonds. These funds provide a buffer against interest rate swings while keeping money accessible. While they share similar goals of providing federal tax-exempt income, differences in issuer scale, expenses, and portfolio depth distinguish the two options.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). 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.