BSV vs VUG

Quick Verdict

VUG delivered stronger 1-year returns. BSV offers more diversification with 2787 holdings.

Lower Fees: TiedHigher Returns: VUGMore Diversified: BSV

Side-by-Side Comparison

MetricBSVVUGWinner
Expense Ratio0.03%0.03%
AUM$44.8B$223.2B
Dividend Yield3.98%0.47%
Holdings3,125155
YTD Return+0.28%+10.30%
1Y Return+2.28%+17.28%
3Y Return (annualized)+4.37%+24.74%
5Y Return (annualized)+1.58%+13.10%
Volatility (annualized)2.4%16.5%
Max Drawdown-9.0%-51.4%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionApr 3, 2007Jan 26, 2004

BSV vs VUG Performance

Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year BSV returned +2.28% while VUG returned +17.28%. Year to date, BSV is up 0.28% versus a gain of 10.30% for VUG.

Over three years, BSV compounded at +4.37% per year against +24.74% for VUG; over five years the annualized figures are +1.58% and +13.10% respectively. Across the full 19-year window we track, VUG has the edge at +11.29% annualized vs +0.91%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VUG has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -51.4% for VUG. 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 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BSV charges 0.03% per year while VUG charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BSV currently yields 3.98% against 0.47% for VUG.

Holdings Overlap

0.0%overlap

BSV and VUG share 0 holdings out of 2933 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 VUG?

BSV has an expense ratio of 0.03% while VUG charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, BSV or VUG?

Over the past year BSV returned +2.28% vs +17.28% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (19 years), BSV annualized +0.91% vs +11.29% for VUG. Past performance does not guarantee future results.

Which is riskier, BSV or VUG?

VUG has been the more volatile fund at 16.5% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs VUG -51.4%.

Should I hold both BSV and VUG?

BSV and VUG have a monthly-return correlation of 0.16, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSV and VUG?

BSV and VUG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2933 unique securities.

Which pays a higher dividend, BSV or VUG?

BSV yields 3.98% while VUG yields 0.47%, so BSV currently pays the higher dividend yield.

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