Vanguard Short-Term Treasury ETF vs Tax-Exempt Bond ETF

The Vanguard Short-Term Treasury ETF offers a lower expense ratio and a higher trailing dividend yield compared to the Vanguard Short-Term Tax-Exempt Bond ETF. According to Motley Fool, the Treasury ETF has an expense ratio of 0.03% and a 3.8% payout, while the tax-exempt fund has a 2.7% yield. Nasdaq Markets also notes that the Treasury ETF provides a lower expense ratio and higher trailing dividend yield than the tax-exempt option.

The Vanguard Short-Term Tax-Exempt Bond ETF provides federal tax-exempt income. Motley Fool reports that while both funds are low-cost, the Treasury ETF tracks the Bloomberg US Treasury 1-3 Year Index. These short-term bond funds are used in conservative portfolios to provide a middle ground between volatile longer-term debt and low-yielding cash.

Brief written by urgent.news from Nasdaq Markets, Motley Fool — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.