The Schwab Short-Term U.S. Treasury ETF (SCHO) and Vanguard Short-Term Bond ETF (BSV) offer low-cost, short-duration fixed-income exposure to investors seeking stability and modest income. SCHO edges out BSV in yield, while BSV has a higher one-year return. Both charge 0.03% annually. BSV has a mix of bonds, while SCHO focuses on short-term U.S. Treasury bonds.

BSV holds a mix of U.S. Treasuries and international bonds, with 73% AAA-rated and some riskier A and BBB-rated bonds. SCHO tracks the short-term U.S. Treasury bond market with 97 U.S. government bonds maturing within 1-3 years, mostly AA-rated for low default risk.

BSV pays out more than SCHO due to its higher price, despite having a lower dividend yield. SCHO focuses on 1-3 year maturity bonds, while BSV spans 1-5 years, offering more diverse bond exposure. SCHO may provide more stability with less volatility than BSV.

For diverse bond exposure, choose BSV with over 200 times more holdings. For greater stability and lower risk, opt for SCHO with a shorter maturity range. Consider individual investment goals when selecting between the two ETF options for short-term bond exposure.

Read more at Yahoo Finance: Short-Term Bond ETFs with Long-Lasting Dividend Potential