I have both VCIT (Vanguard Intermediate-Term Corporate Bond ETF) that tracks Bloomberg U.S. 5–10 Year Corporate Bond Index, and IGIB (iShares 5-10 Year Investment Grade Corporate Bond ETF) that tracks ICE BofA 5-10 Year US Corporate Index.
They are similar but not identical ETFs. They have similar distribution rates, and their performance is very close.
What really surprises me they have very different Portfolio Turnover Rates: 10% for IGIB (https://www.blackrock.com/us/individual ... gib-en.pdf), and 72% for VCIT (https://personal1.vanguard.com/funds/tsr/AR3146.pdf).
So, VCIT has a substantially higher portfolio turnover rate than IGIB.
Out of curiosity, I looked at SCHI (Schwab 5-10 Year Corporate Bond ETF) that tracks Bloomberg US 5-10 Year Corporate Bond Index, the same index as for VCIT. Its Portfolio Turnover Rates is ~32%, although posted for a month later than for VCIT and IGIB (https://www.schwabassetmanagement.com/products/schi).
Therefore, VCIT has about twice higher portfolio turnover rate than SCHI, while tracking the same index.
It brings up a question: is portfolio turnover rate really a matter for ETFs if their performance and distributions are similar? Thank you in advance.
They are similar but not identical ETFs. They have similar distribution rates, and their performance is very close.
What really surprises me they have very different Portfolio Turnover Rates: 10% for IGIB (https://www.blackrock.com/us/individual ... gib-en.pdf), and 72% for VCIT (https://personal1.vanguard.com/funds/tsr/AR3146.pdf).
So, VCIT has a substantially higher portfolio turnover rate than IGIB.
Out of curiosity, I looked at SCHI (Schwab 5-10 Year Corporate Bond ETF) that tracks Bloomberg US 5-10 Year Corporate Bond Index, the same index as for VCIT. Its Portfolio Turnover Rates is ~32%, although posted for a month later than for VCIT and IGIB (https://www.schwabassetmanagement.com/products/schi).
Therefore, VCIT has about twice higher portfolio turnover rate than SCHI, while tracking the same index.
It brings up a question: is portfolio turnover rate really a matter for ETFs if their performance and distributions are similar? Thank you in advance.
Statistics: Posted by urban — Wed Oct 30, 2024 7:44 pm — Replies 1 — Views 108