vcsh vs. vfstx [Short Term Corp. vs. Investment Grade Bond]
vcsh vs. vfstx [Short Term Corp. vs. Investment Grade Bond]
Any thoughts on which would be the better short-term bond vehicle? The ETF VCSH has a slightly better yield (1.15% vs. 1.03%) and expense ratio (0.12% vs. 0.20%). The mutual fund VFSTX has a lower duration (2.3 vs. 2.9) and is more diversified beyond simply U.S. corporate bonds (some treasury/agency, some asset backed and some foreign bonds). The ETF has no commission in my Vanguard brokerage account and the mutual fund is, of course, no-load, so that's a wash. Thanks.
Re: vcsh vs. vfstx
VFSTX had a much more significant dip in value than VCSH in 2008.
Re: vcsh vs. vfstx [Short Term Corp. vs. Investment Grade Bo
There is no way to predict the future, so there is no way to know which one will have higher performance going forward.
The Vanguard short-term bond funds (of which there are at least 4) have performance that tracks the risk of the bonds they hold:
Treasuries = least risk.
Treasuries + everything = less risk
Investment grade corporates + Treasuries = more risk
Corporates = most risk
So you can dial in any risk level you want.
I own VCSH because I want to invest with most risk with a ST bond fund and want to use ETFs.
The Vanguard short-term bond funds (of which there are at least 4) have performance that tracks the risk of the bonds they hold:
Treasuries = least risk.
Treasuries + everything = less risk
Investment grade corporates + Treasuries = more risk
Corporates = most risk
So you can dial in any risk level you want.
I own VCSH because I want to invest with most risk with a ST bond fund and want to use ETFs.
Re: vcsh vs. vfstx
So what? Did you see what it did in 2009?otbricki wrote:VFSTX had a much more significant dip in value than VCSH in 2008.