BSV vs VTCIX
Vanguard Short-Term Bond ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, BSV or VTCIX?
Short Term Bond against Large Cap Blend.
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 | VTCIX |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $46.6B | $5.2B |
| Dividend Yield | 4.03% | 0.90% |
| Holdings | 3,169 | 890 |
| YTD Price Return | -3.29% | +11.40% |
| 1Y Price Return | -3.31% | +13.96% |
| 3Y Price Return (annualized) | +0.68% | +21.08% |
| 5Y Price Return (annualized) | -1.44% | +11.78% |
| Volatility (annualized) | 2.9%Best | 15.7% |
| Max Drawdown | -9.6%Best | -26.0% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term Bond | Large Cap Blend |
| Inception | Apr 3, 2007 | Feb 24, 1999 |
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 4.03% and VTCIX 0.90%.
Volatility and max drawdown are measured over the window both funds cover: Oct 4, 2021 to Oct 1, 2026 (5 years).
BSV vs VTCIX Performance
Vanguard Short-Term Bond ETF (BSV) is an 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's price moved -3.31% and VTCIX's +13.96%, before the income each one paid out.
Over three years, BSV compounded at +0.68% per year against +21.08% for VTCIX; over five years the annualized figures are -1.44% and +11.78% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -9.6% for BSV and -26.0% for VTCIX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.51. They move together some of the time, and apart the rest.
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 4.03% against 0.90% for VTCIX.
Structure and taxes
VTCIX 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
At least 7.9% of VTCIX's money is in holdings BSV also owns.
Stated as a floor: for BSV, our book for it covers 63.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VTCIX and BSV share little of their money.
11 positions in common, counted across the 1,013 positions we hold weights for in BSV and 842 in VTCIX, against full books of 3,169 and 890.
Top Shared Holdings
| Stock | Weight in BSV | Weight in VTCIX | Difference |
|---|---|---|---|
| AAPLApple, Inc | 0.01% | 6.51% | 6.50% |
| CURVVanguard Market Liquidity Fund | 0.70% | 0.33% | 0.37% |
| PEPPepsico Inc. | 0.01% | 0.24% | 0.23% |
| DEDeere & Co Sedol 2261203 | 0.01% | 0.23% | 0.22% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.05% | 0.19% | 0.14% |
| AFLAflac Inc. | 0.01% | 0.13% | 0.12% |
| MOAltria Group Inc. | 0.02% | 0.10% | 0.08% |
| ESEversource Energ | 0.01% | 0.04% | 0.03% |
| KVUEKenvue Inc | 0.01% | 0.04% | 0.03% |
| HUBBHubbell Inc | 0.00% | 0.04% | 0.04% |
You are not choosing between two funds in isolation.
Whichever of BSV and VTCIX 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 VTCIX?
BSV has an expense ratio of 0.03% while VTCIX charges 0.03%. At the precision these are quoted to, they cost the same.
Which is riskier, BSV or VTCIX?
VTCIX has been the more volatile fund at 15.7% annualized versus 2.9% for BSV. Worst drawdown: BSV -9.6% vs VTCIX -26.0%.
Should I hold both BSV and VTCIX?
BSV and VTCIX have a monthly-return correlation of 0.51, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between BSV and VTCIX?
At least 7.9% of VTCIX's money is in holdings BSV also owns. Our book for BSV is partial, so the real figure is this or higher. They hold 11 positions in common, counted across the 1,013 positions we hold weights for in BSV and 842 in VTCIX.
Which pays a higher dividend, BSV or VTCIX?
BSV yields 4.03% while VTCIX yields 0.90%, so BSV currently pays the higher dividend yield.
Is it better to hold VTCIX or BSV in a taxable account?
BSV is an ETF and VTCIX 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 VTCIX better than BSV?
BSV and VTCIX are close on every measure we can compare. Which one suits a particular account depends on what it is for. This is information, not a recommendation.