BSV vs VEU
Vanguard Short-Term Bond ETF vs Vanguard FTSE All World Ex US ETF
Quick Verdict
BSV has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 2818 holdings.
Side-by-Side Comparison
| Metric | BSV | VEU | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $44.8B | $67.3B | |
| Dividend Yield | 3.98% | 2.54% | |
| Holdings | 3,125 | 3,921 | |
| YTD Return | +0.42% | +15.24% | |
| 1Y Return | +2.36% | +27.46% | |
| 3Y Return (annualized) | +4.47% | +20.06% | |
| 5Y Return (annualized) | +1.60% | +9.53% | |
| Volatility (annualized) | 2.4% | 17.7% | |
| Max Drawdown | -9.0% | -62.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Mar 2, 2007 |
BSV vs VEU Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US). Over the past year BSV returned +2.36% while VEU returned +27.46%. Year to date, BSV is up 0.42% versus a gain of 15.24% for VEU.
Over three years, BSV compounded at +4.47% per year against +20.06% for VEU; over five years the annualized figures are +1.60% and +9.53% respectively. Across the full 19-year window we track, VEU has the edge at +3.58% annualized vs +0.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -62.8% for VEU. 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSV charges 0.03% per year while VEU charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, BSV currently yields 3.98% against 2.54% for VEU.
Holdings Overlap
BSV and VEU share 0 holdings out of 5605 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BSV or VEU?
BSV has an expense ratio of 0.03% while VEU charges 0.04%. BSV is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, BSV or VEU?
Over the past year BSV returned +2.36% vs +27.46% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (19 years), BSV annualized +0.91% vs +3.58% for VEU. Past performance does not guarantee future results.
Which is riskier, BSV or VEU?
VEU has been the more volatile fund at 17.7% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs VEU -62.8%.
Should I hold both BSV and VEU?
BSV and VEU have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and VEU?
BSV and VEU share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5605 unique securities.
Which pays a higher dividend, BSV or VEU?
BSV yields 3.98% while VEU yields 2.54%, so BSV currently pays the higher dividend yield.
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