Which Short-Term Bond ETF Is the Better Buy: iShares' IGSB or Schwab's SCHO?
Compare portfolio size, risk profiles, and income strategies as these two leading funds take different approaches to short-term fixed income.
Which Short-Term Bond ETF Is the Better Buy: iShares' IGSB or Schwab's SCHO?
Overview
The iShares 1-5 Year Investment Grade Corporate Bond ETF (NASDAQ:IGSB) offers higher yields through corporate debt, while the Schwab Short-Term U.S. Treasury ETF (NYSEMKT:SCHO) provides lower-risk government exposure at a lower cost.
Investors seeking safety often look to short-term bonds to reduce portfolio volatility. While both the iShares fund and the Schwab ETF focus on the short end of the maturity spectrum, they target different credit sectors. This comparison explores how a corporate-heavy approach compares against a pure government bond strategy.
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.
