VGSH vs. SMB: A Comparison of Two Top Short-Term Bond ETFs

Vanguard's VGSH and VanEck's SMB are compared as short-term bond ETF options. VGSH offers lower costs (0.03% expense ratio), higher yields (3.85%), and larger assets ($33.9B), making it attractive for general investors. SMB provides tax-exempt municipal bond income (2.76% yield) suited for high-bracket taxpayers, though with slightly higher expenses (0.07%) and lower liquidity ($312.7M). Both funds minimize interest rate risk through short durations, with VGSH having ~2 years maturity versus SMB's 3+ years.