BSV vs VTIP
BSV vs VTIP
Vanguard Short-Term Bond ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP delivered stronger 1-year returns. BSV offers more diversification with 2787 holdings.
Side-by-Side Comparison
| Metric | BSV | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $44.8B | $19.3B | |
| Dividend Yield | 3.98% | 3.60% | |
| Holdings | 3,125 | 27 | |
| YTD Return | +0.41% | +1.87% | |
| 1Y Return | +2.34% | +3.01% | |
| 3Y Return (annualized) | +4.28% | +5.37% | |
| 5Y Return (annualized) | +1.59% | +3.39% | |
| Volatility (annualized) | 2.4% | 2.4% | |
| Max Drawdown | -9.0% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 3, 2007 | Oct 12, 2012 |
BSV vs VTIP Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year BSV returned +2.34% while VTIP returned +3.01%. Year to date, BSV is up 0.41% versus a gain of 1.87% for VTIP.
Over three years, BSV compounded at +4.28% per year against +5.37% for VTIP; over five years the annualized figures are +1.59% and +3.39% respectively. Across the full 14-year window we track, VTIP has the edge at +1.58% annualized vs +0.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BSV has been the more volatile fund, with annualized monthly volatility of 2.4% compared with 2.4% for VTIP. 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 -7.1% for VTIP. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSV charges 0.03% per year while VTIP charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BSV currently yields 3.98% against 3.60% for VTIP.
Holdings Overlap
BSV and VTIP share 0 holdings out of 2810 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 VTIP?
BSV has an expense ratio of 0.03% while VTIP charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BSV or VTIP?
Over the past year BSV returned +2.34% vs +3.01% for VTIP, so VTIP leads on 1-year performance. Over the longest common window we track (14 years), BSV annualized +0.91% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, BSV or VTIP?
BSV has been the more volatile fund at 2.4% annualized versus 2.4% for VTIP. Worst drawdown: BSV -9.0% vs VTIP -7.1%.
Should I hold both BSV and VTIP?
BSV and VTIP have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and VTIP?
BSV and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2810 unique securities.
Which pays a higher dividend, BSV or VTIP?
BSV yields 3.98% while VTIP yields 3.60%, so BSV currently pays the higher dividend yield.
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