BSV vs VCSH
Vanguard Short-Term Bond ETF vs Vanguard Short Term Corporate Bond ETF
Quick Verdict
VCSH delivered stronger 1-year returns. BSV offers more diversification with 3,205 holdings.
Side-by-Side Comparison
| Metric | BSV | VCSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $45.6B | $45.0B | |
| Dividend Yield | 4.01% | 4.46% | |
| Holdings | 3,205 | 3,023 | |
| YTD Return | +0.68% | +1.02% | |
| 1Y Return | +2.19% | +2.85% | |
| 3Y Return (annualized) | +4.42% | +5.50% | |
| 5Y Return (annualized) | +1.61% | +2.33% | |
| Volatility (annualized) | 2.4% | 2.6% | |
| Max Drawdown | -9.0% | -12.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 3, 2007 | Nov 19, 2009 |
BSV vs VCSH Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US). Over the past year BSV returned +2.19% while VCSH returned +2.85%. Year to date, BSV is up 0.68% versus a gain of 1.02% for VCSH.
Over three years, BSV compounded at +4.42% per year against +5.50% for VCSH; over five years the annualized figures are +1.61% and +2.33% respectively. Across the full 17-year window we track, VCSH has the edge at +1.30% annualized vs +0.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCSH has been the more volatile fund, with annualized monthly volatility of 2.6% 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 -12.9% for VCSH. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BSV charges 0.03% per year while VCSH charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BSV currently yields 4.01% against 4.46% for VCSH.
Holdings Overlap
BSV and VCSH share 502 holdings out of 613 unique holdings combined, representing a 4.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BSV | Weight in VCSH | Difference |
|---|---|---|---|
| ABBV 3.2 11/21/29 | 0.06% | 0.20% | 0.14% |
| CVS 4.3 03/25/28 | 0.04% | 0.20% | 0.16% |
| WFC V5.574 07/25/29 | 0.05% | 0.18% | 0.13% |
| AMGN 5.15 03/02/28 | Pro | Pro | Pro |
| GS V5.218 04/23/31 | Pro | Pro | Pro |
| MS V2.699 01/22/31 G | Pro | Pro | Pro |
| BAC V5.162 01/24/31 | Pro | Pro | Pro |
| WFC V5.244 01/24/31 | Pro | Pro | Pro |
| HSBC V7.39 11/03/28 | Pro | Pro | Pro |
| ABIBB 4.75 01/23/29 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, BSV or VCSH?
BSV has an expense ratio of 0.03% while VCSH charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BSV or VCSH?
Over the past year BSV returned +2.19% vs +2.85% for VCSH, so VCSH leads on 1-year performance. Over the longest common window we track (17 years), BSV annualized +0.92% vs +1.30% for VCSH. Past performance does not guarantee future results.
Which is riskier, BSV or VCSH?
VCSH has been the more volatile fund at 2.6% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs VCSH -12.9%.
Should I hold both BSV and VCSH?
BSV and VCSH have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and VCSH?
BSV and VCSH share 502 common holdings with a 4.8% weight overlap. Combined, they hold 613 unique securities.
Which pays a higher dividend, BSV or VCSH?
BSV yields 4.01% while VCSH yields 4.46%, so VCSH currently pays the higher dividend yield.
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