Which Is the Better Vanguard Short-Term Bond ETF for Your Tax Bracket: BSV or VTES?
BSV offers lower costs and higher yields for taxable investors, while VTES provides federal tax-free income for high-bracket earners seeking short-term bond exposure.
Overview
Vanguard Short-Term Tax-Exempt Bond ETF (NYSEMKT:VTES) targets federal tax-free income via municipal bonds, while Vanguard Short-Term Bond ETF (NYSEMKT:BSV) provides taxable exposure to high-quality government and corporate debt.
These two Vanguard offerings appeal to conservative investors looking to limit interest rate sensitivity by focusing on maturities under seven years. While the tax-exempt fund is designed for high-tax-bracket investors, the broader short-term fund provides a more liquid, lower-cost gateway to the investment-grade bond market.
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-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.
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