Average Daily Volume
2.51M
Fund Overview
The Vanguard Short-Term Bond ETF (BSV) is designed to provide investors with exposure to short-term investment-grade bonds. The fund seeks to track the performance of the Bloomberg Barclays U.S. 1–5 Year Government/Credit Float Adjusted Index, which includes U.S. government, investment-grade corporate, and international dollar-denominated bonds with maturities between 1 and 5 years. BSV offers a low-cost way to gain diversified exposure to the short-term bond market, making it suitable for investors seeking income with relatively lower interest rate risk compared to longer-duration bonds. With its focus on high-quality, short-duration bonds, BSV is often used as a core fixed-income holding or a cash alternative in portfolios.
- Asset Class
-
Bond
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 4.20 %
- Currency Hedged
-
No
- Portfolio Turnover
-
56 %
- Dividend Date
-
Why Invest in the BSV ETF?
Potential Benefits
- Lower interest rate risk compared to longer-duration bond funds due to its short-term maturity focus.
- Diversified exposure to high-quality U.S. government and investment-grade corporate bonds.
- Low expense ratio, making it a cost-effective option for fixed-income investors.
- Provides steady income with relatively lower volatility than equities or longer-term bonds.
- Liquidity is high, as it trades like a stock and holds liquid underlying securities.
Potential Risks
- Interest rate risk still exists, albeit reduced, as rising rates can negatively impact bond prices.
- Credit risk, though minimal, is present due to exposure to corporate bonds.
- Lower yield potential compared to longer-duration or higher-risk bond funds.
- Inflation risk may erode real returns if inflation outpaces bond yields.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.2%
|
+0.8%
|
-0.8%
|
+0.2%
|
+0.1%
|
0.0%
|
-0.1%
|
+0.2%
|
-1.1%
|
+0.2%
|
-
|
-
|
| 2025 |
+0.4%
|
+1.0%
|
+0.5%
|
+1.0%
|
-0.2%
|
+0.8%
|
-0.1%
|
+1.1%
|
+0.3%
|
+0.4%
|
+0.6%
|
+0.2%
|
| 2024 |
+0.3%
|
-0.7%
|
+0.4%
|
-0.7%
|
+0.9%
|
+0.7%
|
+1.5%
|
+1.1%
|
+0.9%
|
-1.1%
|
+0.5%
|
0.0%
|
| 2023 |
+1.2%
|
-1.2%
|
+1.9%
|
+0.4%
|
-0.5%
|
-0.6%
|
+0.3%
|
+0.2%
|
-0.4%
|
0.0%
|
+1.8%
|
+1.6%
|
| 2022 |
-1.0%
|
-0.5%
|
-1.9%
|
-1.0%
|
+0.8%
|
-0.9%
|
+1.0%
|
-1.4%
|
-1.8%
|
-0.2%
|
+1.4%
|
0.0%
|
| 2021 |
-0.1%
|
-0.4%
|
-0.2%
|
+0.3%
|
+0.2%
|
-0.2%
|
+0.4%
|
-0.1%
|
-0.3%
|
-0.5%
|
-0.1%
|
-0.2%
|
| 2020 |
+0.9%
|
+1.0%
|
+0.4%
|
+0.8%
|
+0.6%
|
+0.3%
|
+0.4%
|
0.0%
|
0.0%
|
-0.1%
|
+0.2%
|
+0.2%
|
| 2019 |
+0.6%
|
+0.1%
|
+1.0%
|
+0.2%
|
+0.9%
|
+0.7%
|
0.0%
|
+1.1%
|
-0.3%
|
+0.4%
|
-0.1%
|
+0.2%
|
| 2018 |
-0.5%
|
-0.3%
|
+0.2%
|
-0.2%
|
+0.4%
|
+0.1%
|
+0.1%
|
+0.4%
|
-0.2%
|
+0.1%
|
+0.4%
|
+1.0%
|
| 2017 |
+0.3%
|
+0.2%
|
+0.1%
|
+0.4%
|
+0.2%
|
-0.1%
|
+0.3%
|
+0.3%
|
-0.3%
|
0.0%
|
-0.3%
|
0.0%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: BSV vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
BSV tracks the Bloomberg Barclays U.S. 1–5 Year Government/Credit Float Adjusted Index, which includes U.S. Treasury, government agency, and investment-grade corporate bonds with maturities between 1 and 5 years. The index is market-cap weighted, meaning larger issuers have a greater impact on performance. The fund employs a passive management strategy, aiming to replicate the index's performance with minimal tracking error. Holdings are rebalanced regularly to align with the index composition, ensuring consistent exposure to the short-term bond market. BSV primarily holds individual bonds rather than derivatives, providing direct exposure to its underlying assets.
Frequently Asked Questions
What types of bonds does BSV hold?
BSV holds U.S. government, agency, and investment-grade corporate bonds with maturities between 1 and 5 years.
How does BSV compare to a money market fund?
BSV offers slightly higher yield potential than money market funds but carries marginally more interest rate and credit risk due to its bond holdings.
Is BSV a good choice for rising rate environments?
Yes, BSV's short duration makes it less sensitive to interest rate hikes compared to longer-term bond funds.
Does BSV pay monthly dividends?
Yes, BSV distributes income monthly, making it attractive for investors seeking regular cash flow.
Industry Overview
The Vanguard Short-Term Bond ETF (BSV) is part of the short-term bond ETF category, which focuses on bonds with maturities of 1 to 5 years. Short-term bonds are favored by investors seeking income with reduced interest rate sensitivity compared to intermediate or long-term bonds. This segment is particularly attractive in rising rate environments or for conservative investors prioritizing capital preservation. BSV's inclusion of both government and investment-grade corporate bonds provides a balanced approach to credit and duration risk. The fund is ideal for those looking to park cash or stabilize a portfolio without taking on excessive risk.
Alternative Comparison
Compared to peers like iShares 1-3 Year Treasury Bond ETF (SHY) and SPDR Portfolio Short Term Corporate Bond ETF (SPSB), BSV offers a broader mix of government and corporate bonds, providing slightly higher yield potential while maintaining credit quality. Unlike SHY, which focuses solely on Treasuries, BSV includes corporate bonds for additional yield. SPSB, meanwhile, excludes government bonds entirely, making it slightly higher risk. BSV's expense ratio is competitive with these alternatives, appealing to cost-conscious investors. Its diversified approach makes it a middle-ground option between pure government and pure corporate short-term bond ETFs.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and ETFs. With a client-owned structure, Vanguard prioritizes investor interests by minimizing fees and offering transparent, diversified investment options. The firm's fixed-income ETFs, including BSV, are widely regarded for their liquidity, tight tracking to benchmarks, and cost efficiency.
Conclusion
The Vanguard Short-Term Bond ETF (BSV) is a well-rounded choice for investors seeking short-duration, high-quality fixed-income exposure. Its low cost, diversification, and reduced interest rate risk make it suitable for conservative portfolios or as a cash alternative. While it may not offer the highest yields, its stability and liquidity are key advantages in volatile markets. Investors should weigh its benefits against their risk tolerance and income needs.
Boost Your Returns with SectorSurfer
Award-winning investment strategy automation