BSV vs VTCIX
Vanguard Short-Term Bond ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX delivered stronger 1-year returns. BSV offers more diversification with 3,205 holdings.
Side-by-Side Comparison
| Metric | BSV | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $45.6B | $5.2B | |
| Dividend Yield | 4.01% | 0.93% | |
| Holdings | 3,205 | 836 | |
| YTD Return | +0.84% | +13.62% | |
| 1Y Return | +2.75% | +20.53% | |
| 3Y Return (annualized) | +4.61% | +20.45% | |
| 5Y Return (annualized) | +1.65% | +11.49% | |
| Volatility (annualized) | 2.4% | 16.1% | |
| Max Drawdown | -9.0% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Feb 24, 1999 |
BSV vs VTCIX Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year BSV returned +2.75% while VTCIX returned +20.53%. Year to date, BSV is up 0.84% versus a gain of 13.62% for VTCIX.
Over three years, BSV compounded at +4.61% per year against +20.45% for VTCIX; over five years the annualized figures are +1.65% and +11.49% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.49% annualized vs +0.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX 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 -26.0% for VTCIX. 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSV charges 0.03% per year while VTCIX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BSV currently yields 4.01% against 0.93% for VTCIX.
Holdings Overlap
BSV and VTCIX share 4 holdings out of 1379 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 VTCIX?
BSV has an expense ratio of 0.03% while VTCIX charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BSV or VTCIX?
Over the past year BSV returned +2.75% vs +20.53% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), BSV annualized +0.94% vs +11.49% for VTCIX. Past performance does not guarantee future results.
Which is riskier, BSV or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs VTCIX -26.0%.
Should I hold both BSV and VTCIX?
BSV and VTCIX have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and VTCIX?
BSV and VTCIX share 4 common holdings with a 0.0% weight overlap. Combined, they hold 1379 unique securities.
Which pays a higher dividend, BSV or VTCIX?
BSV yields 4.01% while VTCIX yields 0.93%, so BSV currently pays the higher dividend yield.
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