BSV vs VTBNX
Vanguard Short-Term Bond ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. BSV delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | BSV | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.02% | |
| AUM | $45.6B | $207.3B | |
| Dividend Yield | 4.01% | 3.79% | |
| Holdings | 3,205 | 15,623 | |
| YTD Return | +0.77% | -2.18% | |
| 1Y Return | +2.75% | -1.36% | |
| 3Y Return (annualized) | +4.65% | +0.83% | |
| 5Y Return (annualized) | +1.65% | -3.52% | |
| Volatility (annualized) | 2.4% | 6.3% | |
| Max Drawdown | -9.0% | -21.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 3, 2007 | Feb 17, 2009 |
BSV vs VTBNX Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year BSV returned +2.75% while VTBNX returned -1.36%. Year to date, BSV is up 0.77% versus a loss of 2.18% for VTBNX.
Over three years, BSV compounded at +4.65% per year against +0.83% for VTBNX; over five years the annualized figures are +1.65% and -3.52% respectively. Across the full 5-year window we track, BSV has the edge at +0.93% annualized vs -3.52%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTBNX has been the more volatile fund, with annualized monthly volatility of 6.3% 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 -21.5% for VTBNX. 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 0.93. 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 VTBNX 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 3.79% for VTBNX.
Holdings Overlap
BSV and VTBNX share 477 holdings out of 12809 unique holdings combined, representing a 4.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BSV | Weight in VTBNX | Difference |
|---|---|---|---|
| T 4 02/28/30 | 0.88% | 0.32% | 0.56% |
| T 1.125 02/15/31 | 0.76% | 0.21% | 0.55% |
| T 3.75 04/30/27 | 0.68% | 0.27% | 0.41% |
| T 3.875 10/15/27 | Pro | Pro | Pro |
| T 0.625 05/15/30 | Pro | Pro | Pro |
| T 2.875 08/15/28 | Pro | Pro | Pro |
| T 1.375 12/31/28 | Pro | Pro | Pro |
| T 3.75 04/15/28 | Pro | Pro | Pro |
| T 1.25 06/30/28 | Pro | Pro | Pro |
| T 4.125 09/30/27 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, BSV or VTBNX?
BSV has an expense ratio of 0.03% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, BSV or VTBNX?
Over the past year BSV returned +2.75% vs -1.36% for VTBNX, so BSV leads on 1-year performance. Over the longest common window we track (5 years), BSV annualized +0.93% vs -3.52% for VTBNX. Past performance does not guarantee future results.
Which is riskier, BSV or VTBNX?
VTBNX has been the more volatile fund at 6.3% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs VTBNX -21.5%.
Should I hold both BSV and VTBNX?
BSV and VTBNX have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BSV and VTBNX?
BSV and VTBNX share 477 common holdings with a 4.5% weight overlap. Combined, they hold 12809 unique securities.
Which pays a higher dividend, BSV or VTBNX?
BSV yields 4.01% while VTBNX yields 3.79%, so BSV currently pays the higher dividend yield.
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