Vanguard Short-Term Bond ETF vs Tax-Exempt ETF Key Differences

Investors seeking low-volatility fixed income often compare Vanguard Short-Term Bond ETF (NYSEMKT:BSV) and Vanguard Short-Term Tax-Exempt Bond ETF (NYSEMKT:VTES). While both funds target short-duration debt to mitigate interest rate risk, the primary distinction lies in their tax treatment and underlying security types. Choosing between them depends largely on an investor's personal tax bracket and income needs.

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 Short-Term Bond ETF is slightly more affordable with a 0.03% expense ratio compared to 0.05% for the Vanguard Short-Term Tax-Exempt Bond ETF. Additionally, BSV offers a higher trailing dividend yield of 4.00% compared to 2.70% for VTES.

Growth of $1,000 over 3 years (total return)

The Vanguard Short-Term Bond ETF follows the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. This fixed-income fund holds 3,220 securities, primarily U.S. Treasury and corporate debt. Launched in 2007, it has a trailing-12-month divi

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/options/articles/vanguard-short-term-bond-etf-115301504.html)