Vanguard Total Bond Market ETF Tops iShares 3-7 Year Treasury Bond ETF on Yield and Cost. Does That make BND a Buy?
Key takeaways
- While both ETFs provide stability for a diversified portfolio, they target different segments of the fixed-income world.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The Vanguard Total Bond Market ETF is more affordable than the iShares 3-7 Year Treasury Bond ETF, with a significantly lower expense ratio.
While both ETFs provide stability for a diversified portfolio, they target different segments of the fixed-income world. The i Shares fund focuses strictly on the intermediate-term Treasury curve, whereas BND captures the total taxable bond universe, including corporate and mortgage-backed securities, providing wider diversification for income-seeking investors.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield based on the closing price of June 26.
The Vanguard Total Bond Market ETF is more affordable than the iShares 3-7 Year Treasury Bond ETF, with a significantly lower expense ratio. Additionally, the Vanguard fund offers a higher payout, with a current trailing-12-month dividend yield of 3.94% compared to 3.62%.