Loading…
Loading…
Schwab's Treasury-only approach delivers lower volatility and drawdown, while Vanguard's corporate bond mix offers slightly higher yield and broader diversification.
Ascent Wealth Partners LLC lowered its holdings in Vanguard Short-Term Bond ETF (NYSEARCA:BSV) by 28.8% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 17,456 shares of the company's stock after selling 7,077 shares during the quarter. Ascent Wealth
Both funds charge the same rock-bottom fee and target short-term bonds. The difference comes down to how much credit risk you want in your portfolio.
Vanguard Short-Term Bond ETF offers a lower expense ratio and higher trailing dividend yield than Vanguard Short-Term Tax-Exempt Bond ETF. Vanguard Short-Term Bond ETF manages significantly more assets and has a longer operational history than the newer Vanguard Short-Term Tax-Exempt Bond ETF.
A reader asked for my thoughts on BSV. BSV focuses on high-quality, shorter-term treasuries, with sizable investments in quality corporate bonds. I'm seeing somewhat weak fundamentals, without any significant advantages or benefits. Overall risk-return is below-average.
Compare tax efficiency, fund size, and portfolio makeup as you weigh which short-term bond ETF aligns with your income and risk preferences.
Short-term investment-grade bond strategies, with durations in the two-to-three-year range, are well positioned to capture a meaningful yield advantage without the rate sensitivity that has challenged longer duration strategies in recent months. The yield to worst on a diversified short-term bond portfolio currently sits between 4.5% and 5.0%, more than 100 basis points above what bank savings accounts and government money market funds are currently yielding. Although the path for rates is highly uncertain, the range of outcomes in which short-term bonds outperform cash is considerably wider than the range in which they don't.
Comerica Bank cut its holdings in Vanguard Short-Term Bond ETF (NYSEARCA:BSV) by 5.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 737,194 shares of the company's stock after selling 45,795 shares during the quarter. Comerica Bank owned approximately