BSV vs XLV
Vanguard Short-Term Bond ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
BSV has a lower expense ratio. XLV delivered stronger 1-year returns. BSV offers more diversification with 2787 holdings.
Side-by-Side Comparison
| Metric | BSV | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $44.8B | $42.1B | |
| Dividend Yield | 3.98% | 1.60% | |
| Holdings | 3,125 | 62 | |
| YTD Return | +0.30% | +8.96% | |
| 1Y Return | +2.30% | +31.20% | |
| 3Y Return (annualized) | +4.43% | +9.11% | |
| 5Y Return (annualized) | +1.57% | +6.69% | |
| Volatility (annualized) | 2.4% | 14.2% | |
| Max Drawdown | -9.0% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Dec 16, 1998 |
BSV vs XLV Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and State Street Health Care Select Sector SPDR ETF (XLV) is a ETF from SPDR State Street Global Advisors. Over the past year BSV returned +2.30% while XLV returned +31.20%. Year to date, BSV is up 0.30% versus a gain of 8.96% for XLV.
Over three years, BSV compounded at +4.43% per year against +9.11% for XLV; over five years the annualized figures are +1.57% and +6.69% respectively. Across the full 19-year window we track, XLV has the edge at +7.48% annualized vs +0.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLV has been the more volatile fund, with annualized monthly volatility of 14.2% 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 -40.6% for XLV. 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSV charges 0.03% per year while XLV 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 3.98% against 1.60% for XLV.
Holdings Overlap
BSV and XLV share 0 holdings out of 2847 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 XLV?
BSV has an expense ratio of 0.03% while XLV 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 XLV?
Over the past year BSV returned +2.30% vs +31.20% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (19 years), BSV annualized +0.91% vs +7.48% for XLV. Past performance does not guarantee future results.
Which is riskier, BSV or XLV?
XLV has been the more volatile fund at 14.2% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs XLV -40.6%.
Should I hold both BSV and XLV?
BSV and XLV have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and XLV?
BSV and XLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2847 unique securities.
Which pays a higher dividend, BSV or XLV?
BSV yields 3.98% while XLV yields 1.60%, so BSV currently pays the higher dividend yield.
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