BSV vs XLF
Vanguard Short-Term Bond ETF vs State Street Financial Select Sector SPDR ETF
Which is better, BSV or XLF?
Short Term Bond against Large Cap Value.
BSV has a lower expense ratio. XLF led over 1Y, 3Y, 5Y and 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 | XLF |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $45.6B | $54.2B |
| Dividend Yield | 4.01% | 1.40% |
| Holdings | 3,205 | 80 |
| YTD Return | -0.02% | +2.65%Best |
| 1Y Return | +1.15% | +4.78%Best |
| 3Y Return (annualized) | +4.29% | +20.15%Best |
| 5Y Return (annualized) | +1.48% | +10.71%Best |
| Volatility (annualized) | 2.4%Best | 23.0% |
| Max Drawdown | -9.0%Best | -83.8% |
| $10,000 over 5 years | $10,762 | $16,632Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Fixed Income | Equity |
| Style | Short Term Bond | Large Cap Value |
| Inception | Apr 3, 2007 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 10, 2007 to Sep 21, 2026 (19.4 years).
BSV vs XLF 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 19.4 years both funds cover.
BSV vs XLF Performance
Vanguard Short-Term Bond ETF (BSV) is an ETF from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors. Over the past year BSV returned +1.15% while XLF returned +4.78%. Year to date, BSV is down 0.02% versus a gain of 2.65% for XLF.
Over three years, BSV compounded at +4.29% per year against +20.15% for XLF; over five years the annualized figures are +1.48% and +10.71% respectively. Across the full 19-year window we track, XLF has the edge at +2.80% annualized vs +0.89%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 23.0% 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 -83.8% for XLF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.04. They move largely independently of each other.
Fees and Cost Over Time
BSV charges 0.03% per year while XLF 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 1.40% for XLF.
Holdings Overlap
At least 0.9% of XLF's money is in holdings BSV also owns.
Stated as a floor: for BSV, our book for it covers 63.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 1,013 positions we hold weights for in BSV and 77 in XLF, against full books of 3,205 and 80.
You are not choosing between two funds in isolation.
Whichever of BSV and XLF 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 XLF?
BSV has an expense ratio of 0.03% while XLF charges 0.08%. BSV is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, BSV or XLF?
Over the past year BSV returned +1.15% vs +4.78% for XLF, so XLF leads on 1-year performance. Over the longest common window we track (19 years), BSV annualized +0.89% vs +2.80% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BSV or XLF?
XLF has been the more volatile fund at 23.0% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs XLF -83.8%.
Should I hold both BSV and XLF?
BSV and XLF have a monthly-return correlation of 0.04, 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 XLF?
BSV yields 4.01% while XLF yields 1.40%, so BSV currently pays the higher dividend yield.
Is XLF better than BSV?
BSV has a lower expense ratio. XLF led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.