IGSB Offers Higher Yield Potential but More Risk Thank SMB
The Motley Fool
by newsfeedback@fool.com (Adé Hennis)February 15, 2026
AI-Generated Deep Dive Summary
The article discusses two exchange-traded funds (ETFs) offering exposure to fixed-income assets: the VanEck Short Muni ETF (NYSEMKT:SMB) and the iShares 1-5 Year Investment Grade Corporate Bond ETF (NASDAQ:IGSB). While both ETFs cater to investors seeking low-duration bond exposure, their approaches differ significantly. The SMB focuses on short-term tax-exempt municipal bonds, making it appealing for those prioritizing stability and tax efficiency. On the other hand, the IGSB targets investment-grade U.S. corporate bonds, offering potentially higher yields but with a slightly elevated risk profile compared to SMB.
The article highlights that SMB’s focus on municipal bonds provides a unique advantage in certain states with high income taxes, as its returns are often tax-exempt. This makes it an
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Originally published on The Motley Fool on 2/15/2026