

Vanguard Short-Term Corporate Bond ETF focus on investment-grade corporate debt provides a higher trailing-12-month dividend yield than the broad-market iShares fund iShares Core 1-5 Year USD Bond ETF offers significantly greater diversification with over 7,000 holdings compared to 3,000 for the Vanguard fund Vanguard Short-Term Corporate Bond ETF is the more cost-efficient option with an expense ratio of 0.03% and significantly larger assets under management

Vanguard Short-Term Tax-Exempt Bond ETF offers a slightly lower expense ratio than iShares Core 1-5 Year USD Bond ETF. iShares Core 1-5 Year USD Bond ETF has delivered a higher 1-year total return and a higher dividend yield.

One fund prioritizes safety with pure Treasuries, while the other seeks higher returns with a broader bond mix. Explore how risk and reward stack up.

These portfolio anchors differ in bond mix, volatility, and income approach. See how each ETF aligns with your fixed income strategy.

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.

The iShares Core 1-5 Year USD Bond ETF offers diversified exposure to short-term U.S. dollar bonds with a focus on liquidity and income.

iShares Core 1-5 Year USD Bond ETF offers diversified, short-duration exposure to U.S. investment-grade and select high-yield bonds.

This ETF provides diversified access to short-term U.S. dollar bonds, balancing income needs with moderate risk in shifting markets.