Best short-term bond fund in a taxable account
Best short-term bond fund in a taxable account
I posted recently about selling a portion of my total bond fund allocation at a loss to buy a short-term bond ETF. Does anyone have a recommendation for The best short-term bond ETF if I want to consider taxable distributions?
Time is your friend; impulse is your enemy. -John C. Bogle
Re: Best short-term bond fund in a taxable account
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Last edited by benway on Wed Aug 03, 2022 8:03 am, edited 1 time in total.
Re: Best short-term bond fund in a taxable account
Do you mean you want distributions as large as can be found or as small as can be found?
The lowest would be a money market fund and the highest might be something like short term investment grade VFSUX or VCSH ETF. Other options are CDs and MYGA's.
The lowest would be a money market fund and the highest might be something like short term investment grade VFSUX or VCSH ETF. Other options are CDs and MYGA's.
Re: Best short-term bond fund in a taxable account
I'm looking for small distributions or tax-advantaged distributions to avoid ordinary income tax, balanced against a reasonable return.
Time is your friend; impulse is your enemy. -John C. Bogle
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Re: Best short-term bond fund in a taxable account
Here's one option. Vanguard Limited Term Tax Exempt.
https://investor.vanguard.com/mutual-fu ... file/VMLTX
Regards,
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Re: Best short-term bond fund in a taxable account
MFJ 24% Federal (near the bottom of the range) 4.95% State
Time is your friend; impulse is your enemy. -John C. Bogle
Re: Best short-term bond fund in a taxable account
If you're OK with investment grade or corporate bond funds, VCSH (0.85% yield), IGSB (0.90% yield) or ISTB (0.94% yield) provide better after-tax returns than the short-term muni ETFs like SUB (0.29% yield). Even BSV, Vanguard's "default" short-term bond fund at 0.47% yield seems a better deal.
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