BSV vs VTEB
Vanguard Short-Term Bond ETF vs Vanguard Tax-Exempt Bond ETF
Which is better, BSV or VTEB?
Short Term Bond against Municipal Bond.
BSV led over 1Y, 3Y and 5Y, VTEB over 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 | VTEB |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $45.6B | $48.5B |
| Dividend Yield | 4.01% | 3.44% |
| Holdings | 3,205 | 10,566 |
| YTD Return | -0.08%Best | -1.97% |
| 1Y Return | +1.05%Best | -0.51% |
| 3Y Return (annualized) | +4.27%Best | +2.65% |
| 5Y Return (annualized) | +1.47%Best | +0.10% |
| Volatility (annualized) | 2.2%Best | 4.9% |
| Max Drawdown | -9.0%Best | -17.0% |
| $10,000 over 5 years | $10,757Best | $10,050 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Tax Preferred |
| Style | Short Term Bond | Municipal Bond |
| Inception | Apr 3, 2007 | Aug 21, 2015 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Aug 25, 2015 to Sep 18, 2026 (11.1 years).
BSV vs VTEB 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 11.1 years both funds cover.
BSV vs VTEB Performance
Vanguard Short-Term Bond ETF (BSV) is an ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US). Over the past year BSV returned +1.05% while VTEB returned -0.51%. Year to date, BSV is down 0.08% versus a loss of 1.97% for VTEB.
Over three years, BSV compounded at +4.27% per year against +2.65% for VTEB; over five years the annualized figures are +1.47% and +0.10% respectively. Across the full 11-year window we track, VTEB has the edge at +1.02% annualized vs +0.93%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTEB has been the more volatile fund, with annualized monthly volatility of 4.9% compared with 2.2% 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 -17.0% for VTEB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BSV charges 0.03% per year while VTEB charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BSV currently yields 4.01% against 3.44% for VTEB.
Holdings Overlap
We hold position weights for 1,013 holdings in BSV and 17 in VTEB, totalling 63.3% and 0.0% 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 17 in VTEB, against full books of 3,205 and 10,566.
You are not choosing between two funds in isolation.
Whichever of BSV and VTEB 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 VTEB?
BSV has an expense ratio of 0.03% while VTEB charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, BSV or VTEB?
Over the past year BSV returned +1.05% vs -0.51% for VTEB, so BSV leads on 1-year performance. Over the longest common window we track (11 years), BSV annualized +0.93% vs +1.02% for VTEB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BSV or VTEB?
VTEB has been the more volatile fund at 4.9% annualized versus 2.2% for BSV. Worst drawdown: BSV -9.0% vs VTEB -17.0%.
Should I hold both BSV and VTEB?
BSV and VTEB have a monthly-return correlation of 0.74, 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 VTEB?
BSV yields 4.01% while VTEB yields 3.44%, so BSV currently pays the higher dividend yield.
Is VTEB better than BSV?
BSV led over 1Y, 3Y and 5Y, VTEB over the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.