BSV vs VIITX
Vanguard Short-Term Bond ETF vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Which is better, BSV or VIITX?
Short Term Bond against Intermediate Term Bond.
VIITX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.96.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BSV | VIITX |
|---|---|---|
| Expense Ratio | 0.03% | 0.02%Best |
| AUM | $45.6B | - |
| Dividend Yield | 4.01% | 4.60% |
| Holdings | 3,205 | 2,599 |
| YTD Price Return | -2.66% | -3.46% |
| 1Y Price Return | -2.81% | -3.69% |
| 3Y Price Return (annualized) | +0.67% | +0.19% |
| 5Y Price Return (annualized) | -1.36% | -2.61% |
| Volatility (annualized) | 2.9%Best | 4.2% |
| Max Drawdown | -9.7%Best | -14.9% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Short Term Bond | Intermediate Term Bond |
| Inception | Apr 3, 2007 | Dec 1, 1997 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. BSV currently yields 4.01% and VIITX 4.60%.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2021 to Sep 18, 2026 (5 years).
BSV vs VIITX Performance
Vanguard Short-Term Bond ETF (BSV) is an ETF from Vanguard (US) and Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US). Over the past year BSV's price moved -2.81% and VIITX's -3.69%, before the income each one paid out.
Over three years, BSV compounded at +0.67% per year against +0.19% for VIITX; over five years the annualized figures are -1.36% and -2.61% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIITX has been the more volatile fund, with annualized monthly volatility of 4.2% compared with 2.9% 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 -9.7% for BSV and -14.9% for VIITX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BSV charges 0.03% per year while VIITX charges 0.02%. On a $10,000 position that is $3 vs $2 annually, a gap of $1 per year that compounds over a long holding period. On income, BSV currently yields 4.01% against 4.60% for VIITX.
Structure and taxes
VIITX is a mutual fund and BSV is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 1,013 holdings in BSV and 1,285 in VIITX, totalling 63.3% and 52.5% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 133 positions appear in both.
The two holdings books were reported 92 days apart, BSV as of Jul 31, 2026 and VIITX as of Apr 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
133 positions in common, counted across the 1,013 positions we hold weights for in BSV and 1,285 in VIITX, against full books of 3,205 and 2,599.
Top Shared Holdings
| Stock | Weight in BSV | Weight in VIITX | Difference |
|---|---|---|---|
| T 3.5 01/31/28Us Treasury N/B 3.375 01/31/2028 | 1.11% | 0.79% | 0.32% |
| T 3.75 08/15/27Treasury Note (Otr) 3.75% Aug 15, 2027 | 0.10% | 1.16% | 1.06% |
| T 2.75 05/31/29United States Treasury Note/Bond Us Treasury N/B | 0.32% | 0.82% | 0.50% |
| T 4.125 10/31/29Us Treas Nts 4.125% 10/31/29 | 0.67% | 0.46% | 0.21% |
| T 3.875 07/31/30Us Treasury N/B 3.88% 31Jul2030 | 0.69% | 0.33% | 0.36% |
| T 3.625 08/31/29United States Treasury Note/Bond - When Issued 3.63% 31Aug2029 | 0.61% | 0.41% | 0.20% |
| T 4 05/31/30Us Treasury N/B 05/30 4 | 0.58% | 0.41% | 0.17% |
| T 1 07/31/28United States Treasuryu.S. Treasury Notes 07/31/2028 | 0.45% | 0.47% | 0.02% |
| T 1.75 01/31/29United States Treasury Note 2029-01-31 | 0.42% | 0.49% | 0.07% |
| T 4.25 02/28/29United States Treasury Note 2029-02-28 | 0.53% | 0.35% | 0.18% |
You are not choosing between two funds in isolation.
Whichever of BSV and VIITX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BSV or VIITX?
BSV has an expense ratio of 0.03% while VIITX charges 0.02%. VIITX is the cheaper option, by $1 a year on a $10,000 investment.
Which is riskier, BSV or VIITX?
VIITX has been the more volatile fund at 4.2% annualized versus 2.9% for BSV. Worst drawdown: BSV -9.7% vs VIITX -14.9%.
Should I hold both BSV and VIITX?
BSV and VIITX have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, BSV or VIITX?
BSV yields 4.01% while VIITX yields 4.60%, so VIITX currently pays the higher dividend yield.
Is it better to hold VIITX or BSV in a taxable account?
BSV is an ETF and VIITX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VIITX better than BSV?
VIITX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.96. Which one suits a particular account depends on what it is for. This is information, not a recommendation.