IGSB vs. VGSH: Short-Term Bond ETF Showdown for Income Investors
Key takeaways
- Both funds serve as conservative building blocks for a fixed-income portfolio, targeting maturities in the one- to five-year range.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The Vanguard fund is marginally more affordable with a 0.03% expense ratio.
Both funds serve as conservative building blocks for a fixed-income portfolio, targeting maturities in the one- to five-year range. However, they differ significantly in credit quality. The i Shares fund focuses on investment-grade corporate debt, whereas the Vanguard fund concentrates on the safety of U.S. Treasury securities.
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.
The Vanguard fund is marginally more affordable with a 0.03% expense ratio. However, the iShares fund offers a higher payout, yielding 4.60% compared to 3.9% for the Vanguard fund, reflecting the extra risk premium associated with corporate credit.