BSV vs VCIT
Vanguard Short-Term Bond ETF vs Vanguard Intermediate Term Corporate Bond ETF
Quick Verdict
BSV delivered stronger 1-year returns. BSV offers more diversification with 3,205 holdings.
Side-by-Side Comparison
| Metric | BSV | VCIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $45.6B | $69.8B | |
| Dividend Yield | 4.01% | 4.87% | |
| Holdings | 3,205 | 2,271 | |
| YTD Return | +0.66% | -0.34% | |
| 1Y Return | +2.17% | +1.89% | |
| 3Y Return (annualized) | +4.42% | +5.93% | |
| 5Y Return (annualized) | +1.61% | +0.74% | |
| Volatility (annualized) | 2.4% | 6.0% | |
| Max Drawdown | -9.0% | -20.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 3, 2007 | Nov 19, 2009 |
BSV vs VCIT Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US). Over the past year BSV returned +2.17% while VCIT returned +1.89%. Year to date, BSV is up 0.66% versus a loss of 0.34% for VCIT.
Over three years, BSV compounded at +4.42% per year against +5.93% for VCIT; over five years the annualized figures are +1.61% and +0.74% respectively. Across the full 17-year window we track, VCIT has the edge at +1.75% annualized vs +0.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCIT has been the more volatile fund, with annualized monthly volatility of 6.0% compared with 2.4% for BSV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -9.0% for BSV and -20.7% for VCIT. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BSV charges 0.03% per year while VCIT charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BSV currently yields 4.01% against 4.87% for VCIT.
Holdings Overlap
BSV and VCIT share 15 holdings out of 819 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BSV | Weight in VCIT | Difference |
|---|---|---|---|
| WMT 1.8 09/22/31 | 0.00% | 0.08% | 0.08% |
| TOYOTA 1.9 09/12/31 | 0.01% | 0.05% | 0.04% |
| PEP 1.95 10/21/31 | 0.00% | 0.06% | 0.06% |
| STZ 2.25 08/01/31 | Pro | Pro | Pro |
| EA 1.85 02/15/31 | Pro | Pro | Pro |
| HLEND | Pro | Pro | Pro |
| ELV 4.101 03/01/28 | Pro | Pro | Pro |
| HNDA 4.85 10/23/31 G | Pro | Pro | Pro |
| CNP | Pro | Pro | Pro |
| CVS 1.875 02/28/31 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, BSV or VCIT?
BSV has an expense ratio of 0.03% while VCIT charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BSV or VCIT?
Over the past year BSV returned +2.17% vs +1.89% for VCIT, so BSV leads on 1-year performance. Over the longest common window we track (17 years), BSV annualized +0.92% vs +1.75% for VCIT. Past performance does not guarantee future results.
Which is riskier, BSV or VCIT?
VCIT has been the more volatile fund at 6.0% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs VCIT -20.7%.
Should I hold both BSV and VCIT?
BSV and VCIT have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and VCIT?
BSV and VCIT share 15 common holdings with a 0.1% weight overlap. Combined, they hold 819 unique securities.
Which pays a higher dividend, BSV or VCIT?
BSV yields 4.01% while VCIT yields 4.87%, so VCIT currently pays the higher dividend yield.
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