Which Is the Better Intermediate-Term Bond ETF, Vanguard's VCIT or iShares' Trea

Choosing between the Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT) and iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) involves balancing higher income potential from corporate credit against the safety and lower volatility of U.S. government treasuries.

Both exchange-traded funds manage sensitivity to interest rate changes by targeting middle-range maturities, yet they provide access to fundamentally different segments of the fixed-income market. The choice between them often hinges on an investor preference for the security of government backing versus the potentially higher yields found in corporate debt.

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 the more affordable option, featuring a 0.03% expense ratio compared to 0.15% for the iShares fund. This 0.12 percentage point difference may influence long-term compounding.

Additionally, the Vanguard fund provides a higher payout for income-seeking investors, maintaining a dividend yield that is 1.15 perce

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/options/articles/better-intermediate-term-bond-etf-201201948.html)