IGLB vs SCHQ: Corporate Bonds Beat Treasuries on Yield and Returns
IGLB offers superior diversification and 5-year performance, though SCHQ offers lower costs and less volatility for conservative investors.
Overview
The Schwab Long-Term U.S. Treasury ETF (NYSEMKT:SCHQ) provides low-cost exposure to government-backed debt, while the iShares 10+ Year Investment Grade Corporate Bond ETF (NYSEMKT:IGLB) targets higher yields through a diversified corporate credit portfolio.
Investors seeking long-duration bond exposure often choose between the perceived safety of U.S. Treasuries and the credit premium offered by high-quality corporations. While both funds are sensitive to interest rate changes, they have different risk profiles due to their underlying issuers.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.