BSV vs VNQ
Vanguard Short-Term Bond ETF vs Vanguard Real Estate ETF
Which is better, BSV or VNQ?
Short Term Bond against Mid Cap Blend.
BSV has a lower expense ratio. BSV led over 5Y, VNQ over 1Y, 3Y and the full window.
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 | VNQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.13% |
| AUM | $46.6B | $38.1B |
| Dividend Yield | 4.03% | 3.60% |
| Holdings | 3,169 | 144 |
| YTD Return | -0.19% | +3.60%Best |
| 1Y Return | +0.79% | +1.07%Best |
| 3Y Return (annualized) | +4.31% | +10.55%Best |
| 5Y Return (annualized) | +1.47%Best | +0.97% |
| Volatility (annualized) | 2.4%Best | 22.1% |
| Max Drawdown | -9.0%Best | -74.0% |
| $10,000 over 5 years | $10,757Best | $10,495 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term Bond | Mid Cap Blend |
| Inception | Apr 3, 2007 | Sep 23, 2004 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 10, 2007 to Oct 1, 2026 (19.5 years).
BSV vs VNQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.5 years both funds cover.
BSV vs VNQ Performance
Vanguard Short-Term Bond ETF (BSV) is an ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year BSV returned +0.79% while VNQ returned +1.07%. Year to date, BSV is down 0.19% versus a gain of 3.60% for VNQ.
Over three years, BSV compounded at +4.31% per year against +10.55% for VNQ; over five years the annualized figures are +1.47% and +0.97% respectively. Across the full 20-year window we track, VNQ has the edge at +1.63% annualized vs +0.88%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 22.1% 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 -74.0% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.28. They move largely independently of each other.
Fees and Cost Over Time
BSV charges 0.03% per year while VNQ charges 0.13%. On a $10,000 position that is $3 vs $13 annually, a gap of $10 per year that compounds over a long holding period. On income, BSV currently yields 4.03% against 3.60% for VNQ.
Holdings Overlap
We hold position weights for 1,013 holdings in BSV and 139 in VNQ, totalling 63.3% and 99.4% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1,013 positions we hold weights for in BSV and 139 in VNQ, against full books of 3,169 and 144.
What only one of them owns
Measured across the 1,013 and 139 positions we hold weights for.
BSV holds 654 positions VNQ does not, 63.3% of the fund.
Largest: T 3.5 01/31/28 1.11%, T 4 02/28/30 0.87%, T 0.875 11/15/30 0.78%, T 4.375 12/31/29 0.76%, T 1.125 02/15/31 0.75%
You are not choosing between two funds in isolation.
Whichever of BSV and VNQ 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 VNQ?
BSV has an expense ratio of 0.03% while VNQ charges 0.13%. BSV is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, BSV or VNQ?
Over the past year BSV returned +0.79% vs +1.07% for VNQ, so VNQ leads on 1-year performance. Over the longest common window we track (20 years), BSV annualized +0.88% vs +1.63% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BSV or VNQ?
VNQ has been the more volatile fund at 22.1% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs VNQ -74.0%.
Should I hold both BSV and VNQ?
BSV and VNQ have a monthly-return correlation of 0.28, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BSV or VNQ?
BSV yields 4.03% while VNQ yields 3.60%, so BSV currently pays the higher dividend yield.
Is VNQ better than BSV?
BSV has a lower expense ratio. BSV led over 5Y, VNQ over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.