BSV vs VDIGX
Vanguard Short-Term Bond ETF vs Vanguard Dividend Growth Fund Investor Class
Quick Verdict
BSV has a lower expense ratio. BSV delivered stronger 1-year returns. BSV offers more diversification with 2787 holdings.
Side-by-Side Comparison
| Metric | BSV | VDIGX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.22% | |
| AUM | $44.8B | $36.4B | |
| Dividend Yield | 3.98% | 1.87% | |
| Holdings | 3,125 | 55 | |
| YTD Return | +0.28% | -0.21% | |
| 1Y Return | +2.28% | -8.99% | |
| 3Y Return (annualized) | +4.37% | -3.09% | |
| 5Y Return (annualized) | +1.58% | -2.92% | |
| Volatility (annualized) | 2.4% | 16.1% | |
| Max Drawdown | -9.0% | -32.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | May 15, 1992 |
BSV vs VDIGX Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US). Over the past year BSV returned +2.28% while VDIGX returned -8.99%. Year to date, BSV is up 0.28% versus a loss of 0.21% for VDIGX.
Over three years, BSV compounded at +4.37% per year against -3.09% for VDIGX; over five years the annualized figures are +1.58% and -2.92% respectively. Across the full 5-year window we track, BSV has the edge at +0.91% annualized vs -2.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDIGX has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -32.6% for VDIGX. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSV charges 0.03% per year while VDIGX charges 0.22%. On a $10,000 position that is $3 vs $22 annually, a gap of $19 per year that compounds over a long holding period. On income, BSV currently yields 3.98% against 1.87% for VDIGX.
Holdings Overlap
BSV and VDIGX share 1 holdings out of 2833 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BSV | Weight in VDIGX | Difference |
|---|---|---|---|
| MMC | 0.03% | 1.95% | 1.92% |
Frequently Asked Questions
Which is cheaper, BSV or VDIGX?
BSV has an expense ratio of 0.03% while VDIGX charges 0.22%. BSV is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, BSV or VDIGX?
Over the past year BSV returned +2.28% vs -8.99% for VDIGX, so BSV leads on 1-year performance. Over the longest common window we track (5 years), BSV annualized +0.91% vs -2.92% for VDIGX. Past performance does not guarantee future results.
Which is riskier, BSV or VDIGX?
VDIGX has been the more volatile fund at 16.1% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs VDIGX -32.6%.
Should I hold both BSV and VDIGX?
BSV and VDIGX have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and VDIGX?
BSV and VDIGX share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2833 unique securities.
Which pays a higher dividend, BSV or VDIGX?
BSV yields 3.98% while VDIGX yields 1.87%, so BSV currently pays the higher dividend yield.
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