Which Short-Term Bond ETF Is the Better Buy: Vanguard's BSV or iShares' ISTB?
Vanguard offers lower fees and $69.9B in assets, while iShares delivers a higher 4.3% dividend yield. Which suits your income strategy?
Overview
While the Vanguard Short-Term Bond ETF (NYSEMKT:BSV) offers a lower expense ratio and higher assets under management (AUM), the iShares Core 1-5 Year USD Bond ETF (NASDAQ:ISTB) provides a higher trailing-12-month dividend yield.
Both the Vanguard Short-Term Bond ETF and the iShares Core 1-5 Year USD Bond ETF focus on the short end of the investment-grade curve. These funds seek to provide stability and income by holding debt with maturities between one and five years, making them potential alternatives for investors looking to outpace traditional savings accounts while managing interest rate risk.
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.