Which Long-Term Bond ETF Is the Better Buy: Vanguard's VCLT or Schwab's SCHQ?
Both funds charge 0.03% expense ratios, but VCLT offers higher yield while SCHQ experienced steeper losses over five years.
Overview
Vanguard Long-Term Corporate Bond ETF (NASDAQ:VCLT) focuses on high-quality corporate debt, whereas Schwab Long-Term U.S. Treasury ETF (NYSEMKT:SCHQ) targets the safety of government-backed obligations, resulting in distinct yield and risk profiles.
Both funds seek to provide income by investing in the long end of the maturity spectrum. While they share similar duration risks, the choice between them often comes down to an investor's preference for the credit premium of corporate bonds versus the perceived safety of U.S. Treasuries.
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.