The Vanguard Short-Term Treasury ETF (NASDAQ:VGSH) offers a lower expense ratio and a higher trailing yield than the Vanguard Short-Term Tax-Exempt Bond ETF (NYSEMKT:VTES), which provides federal tax-exempt income. Image source: Getty Images. Short-term bond funds serve as vital components for conservative portfolios, offering a middle ground between low-yielding cash and the volatility of longer-term debt. government debt and another that seeks to maximize after-tax returns through municipal obligations.
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