BSV vs XLE
Vanguard Short-Term Bond ETF vs State Street Energy Select Sector SPDR ETF
Quick Verdict
BSV has a lower expense ratio. XLE delivered stronger 1-year returns. BSV offers more diversification with 3,205 holdings.
Side-by-Side Comparison
| Metric | BSV | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $45.6B | $40.6B | |
| Dividend Yield | 4.01% | 2.55% | |
| Holdings | 3,205 | 24 | |
| YTD Return | +0.68% | +42.04% | |
| 1Y Return | +2.19% | +45.72% | |
| 3Y Return (annualized) | +4.42% | +15.79% | |
| 5Y Return (annualized) | +1.61% | +25.96% | |
| Volatility (annualized) | 2.4% | 25.1% | |
| Max Drawdown | -9.0% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Dec 16, 1998 |
BSV vs XLE Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and State Street Energy Select Sector SPDR ETF (XLE) is a ETF from SPDR State Street Global Advisors. Over the past year BSV returned +2.19% while XLE returned +45.72%. Year to date, BSV is up 0.68% versus a gain of 42.04% for XLE.
Over three years, BSV compounded at +4.42% per year against +15.79% for XLE; over five years the annualized figures are +1.61% and +25.96% respectively. Across the full 19-year window we track, XLE has the edge at +7.13% annualized vs +0.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.1% 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 -76.7% for XLE. 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 -0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSV charges 0.03% per year while XLE charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, BSV currently yields 4.01% against 2.55% for XLE.
Holdings Overlap
BSV and XLE share 0 holdings out of 580 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 XLE?
BSV has an expense ratio of 0.03% while XLE charges 0.08%. BSV is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, BSV or XLE?
Over the past year BSV returned +2.19% vs +45.72% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (19 years), BSV annualized +0.92% vs +7.13% for XLE. Past performance does not guarantee future results.
Which is riskier, BSV or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs XLE -76.7%.
Should I hold both BSV and XLE?
BSV and XLE have a monthly-return correlation of -0.04, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and XLE?
BSV and XLE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 580 unique securities.
Which pays a higher dividend, BSV or XLE?
BSV yields 4.01% while XLE yields 2.55%, so BSV currently pays the higher dividend yield.
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