Loading…
Loading…
The iShares 1-5 Year Investment Grade Corporate Bond ETF and Vanguard Short-Term Corporate Bond ETF both provide exposure to high-quality corporate debt with maturities under five years. The Vanguard Short-Term Corporate Bond ETF has a slightly lower expense ratio of 0.03% compared to 0.04% for the iShares fund.
Bond yields remain elevated, but rising rates create risks. Here are a few factors to consider before buying bond ETFs.
Bank of New York Mellon Corp raised its position in iShares 1-5 Year Investment Grade Corporate Bond ETF (NASDAQ: IGSB) by 17.2% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 519,996 shares of the company's stock after buying an additional 76,230 shares
Vanguard Short-Term Bond ETF offers a lower expense ratio but a lower dividend yield than iShares 1-5 Year Investment Grade Corporate Bond ETF. iShares 1-5 Year Investment Grade Corporate Bond ETF delivered a 3.90% total return over the last year, outperforming the Vanguard fund.
iShares 1-5 Year Investment Grade Corporate Bond ETF offers a slightly lower expense ratio and a higher trailing-12-month dividend yield than Vanguard Short-Term Tax-Exempt Bond ETF Vanguard Short-Term Tax-Exempt Bond ETF focuses on federal tax-exempt municipal bonds, while iShares 1-5 Year Investment Grade Corporate Bond ETF holds investment-grade corporate debt iShares 1-5 Year Investment Grade Corporate Bond ETF has shown higher total returns over the last year and three-year periods compared to the Vanguard fund
The iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) offers efficient, low-cost exposure to short/intermediate US investment grade credit. IGSB's 2.7-year duration exposes it through duration to short term rate considerations where there is upside on the Fed's unexpected hawkishness and the genuine need for it. Compressed credit spreads and a 'higher for longer' Fed narrative diminish the appeal of IGSB's intermediate duration and credit risk profile.
Compare cost, volatility, and portfolio makeup as you weigh safety against income potential in these two leading short-duration fixed income ETFs.
iShares 1-5 Year Investment Grade Corporate Bond ETF provides a higher trailing-12-month dividend yield but carries greater price volatility than Vanguard Short-Term Treasury ETF. Vanguard Short-Term Treasury ETF offers slightly lower ownership costs and a significantly shallower maximum drawdown over the last five years.