Which Short-Term Bond ETF Is the Better Buy: Vanguard's BSV or VanEck's Tax-Exempt SMB?
BSV offers lower costs and higher yields for taxable income, while SMB targets tax-exempt municipal bonds for high-bracket investors.
Overview
The Vanguard Short-Term Bond ETF (NYSEMKT:BSV) offers a low-cost, higher-yield approach to investment-grade debt, whereas the VanEck Short Muni ETF (NYSEMKT:SMB) may appeal to investors seeking tax-exempt income.
Short-term bond funds often serve as a defensive anchor for portfolios, aiming to preserve capital while generating steady income. While both the Vanguard fund and the VanEck fund focus on the short end of the yield curve, their underlying tax treatments and credit exposures create distinct roles for specific investor needs and income goals.
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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