BSV vs VXF
Vanguard Short-Term Bond ETF vs Vanguard Extended Market ETF
Quick Verdict
BSV has a lower expense ratio. VXF delivered stronger 1-year returns. BSV offers more diversification with 2787 holdings.
Side-by-Side Comparison
| Metric | BSV | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $44.8B | $31.6B | |
| Dividend Yield | 3.98% | 1.21% | |
| Holdings | 3,125 | 3,376 | |
| YTD Return | +0.42% | +18.25% | |
| 1Y Return | +2.36% | +25.58% | |
| 3Y Return (annualized) | +4.47% | +19.62% | |
| 5Y Return (annualized) | +1.60% | +7.04% | |
| Volatility (annualized) | 2.4% | 18.7% | |
| Max Drawdown | -9.0% | -59.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Dec 27, 2001 |
BSV vs VXF Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year BSV returned +2.36% while VXF returned +25.58%. Year to date, BSV is up 0.42% versus a gain of 18.25% for VXF.
Over three years, BSV compounded at +4.47% per year against +19.62% for VXF; over five years the annualized figures are +1.60% and +7.04% respectively. Across the full 19-year window we track, VXF has the edge at +9.11% annualized vs +0.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -59.4% for VXF. 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSV charges 0.03% per year while VXF charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, BSV currently yields 3.98% against 1.21% for VXF.
Holdings Overlap
BSV and VXF share 3 holdings out of 5246 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 VXF?
BSV has an expense ratio of 0.03% while VXF charges 0.05%. BSV is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, BSV or VXF?
Over the past year BSV returned +2.36% vs +25.58% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (19 years), BSV annualized +0.91% vs +9.11% for VXF. Past performance does not guarantee future results.
Which is riskier, BSV or VXF?
VXF has been the more volatile fund at 18.7% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs VXF -59.4%.
Should I hold both BSV and VXF?
BSV and VXF have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and VXF?
BSV and VXF share 3 common holdings with a 0.0% weight overlap. Combined, they hold 5246 unique securities.
Which pays a higher dividend, BSV or VXF?
BSV yields 3.98% while VXF yields 1.21%, so BSV currently pays the higher dividend yield.
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