Comparison of Vanguard Short-Term Bond ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Yield Comparison: The Vanguard Short-Term Corporate Bond ETF (VCSH) boasts a 1-year return of 6.63%, surpassing the 4.91% of the Vanguard Short-Term Treasury ETF (VGSH), making VCSH more appealing for income-seeking investors.
- Risk and Volatility: VCSH has a maximum drawdown of -9.50%, significantly higher than VGSH's -5.69%, indicating that VCSH's capital protection is weaker during unstable credit conditions, thus suiting investors willing to take on more risk.
- Asset Allocation Differences: VCSH primarily invests in high-quality corporate bonds with only 12 positions, while VGSH diversifies across 93 different U.S. Treasuries, providing VGSH with a more defensive stance against credit risk, appealing to conservative investors.
- Identical Expense Ratios: Both ETFs feature an expense ratio of 0.03%, making them competitively priced, allowing investors to choose based on yield and risk preferences.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BAC is 61.17 USD with a low forecast of 55.00 USD and a high forecast of 71.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 51.810
Low
55.00
Averages
61.17
High
71.00
Current: 51.810
Low
55.00
Averages
61.17
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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