BSV vs. VTES: Which Vanguard Short-Term Bond Fund Is the Better Buy?
Key takeaways
- Both funds target the short end of the fixed-income spectrum, providing a haven for capital with lower interest-rate sensitivity than long-term bonds.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The Vanguard Short-Term Bond ETF is slightly more affordable with an expense ratio of 0.03%.
Both funds target the short end of the fixed-income spectrum, providing a haven for capital with lower interest-rate sensitivity than long-term bonds. While BSV casts a wider net across government and corporate debt, VTES focuses specifically on the municipal market to provide tax-efficient income.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard Short-Term Bond ETF is slightly more affordable with an expense ratio of 0.03%. It also offers a higher payout, with a distribution yield of 4.00% compared to 2.70% for the Vanguard Short-Term Tax-Exempt Bond ETF.