BSV Offers Broader Bond Exposure Than VGSH

Core Viewpoint - The Vanguard Short-Term Bond ETF (BSV) and Vanguard Short-Term Treasury ETF (VGSH) provide low-cost, high-liquidity investment options, with BSV offering broader bond exposure and larger assets under management compared to VGSH, which focuses solely on U.S. Treasuries [1][2]. Cost and Size - Both VGSH and BSV have an expense ratio of 0.03% - VGSH has a 1-year return of 5.1% and a dividend yield of 3.96%, while BSV has a 1-year return of 5.9% and a dividend yield of 3.85% - Assets under management (AUM) for VGSH is $30.4 billion, while BSV has $68.2 billion [3][4]. Performance and Risk Comparison - VGSH has a maximum drawdown of (5.70%) over 5 years, while BSV has a maximum drawdown of (8.54%) - The growth of $1,000 over 5 years is $1,093 for VGSH and $1,083 for BSV [5]. Portfolio Composition - BSV holds 3,115 positions, with 69.8% invested in government bonds and less than 5% in foreign debt, indicating a diverse portfolio that includes U.S. government, investment-grade corporate, and international dollar-denominated bonds [6][7]. - VGSH focuses exclusively on U.S. Treasuries with 92 holdings, reflecting a narrow mandate designed for maximum credit safety [8]. Implications for Investors - Both Vanguard funds are suitable for investors seeking safe options for short-term income, with VGSH's 5-year return slightly outperforming BSV despite its exclusive focus on U.S. Treasuries [10].