BSV vs SPY
BSV vs SPY
Vanguard Short-Term Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
BSV has a lower expense ratio. SPY delivered stronger 1-year returns. BSV offers more diversification with 2787 holdings.
Side-by-Side Comparison
| Metric | BSV | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $44.8B | $789.1B | |
| Dividend Yield | 3.98% | 1.01% | |
| Holdings | 3,125 | 505 | |
| YTD Return | +0.41% | +13.79% | |
| 1Y Return | +2.34% | +23.66% | |
| 3Y Return (annualized) | +4.28% | +21.40% | |
| 5Y Return (annualized) | +1.59% | +13.37% | |
| Volatility (annualized) | 2.4% | 15.3% | |
| Max Drawdown | -9.0% | -56.5% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Jan 22, 1993 |
BSV vs SPY Performance
Vanguard Short-Term Bond ETF (BSV) is a ETF from Vanguard (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BSV returned +2.34% while SPY returned +23.66%. Year to date, BSV is up 0.41% versus a gain of 13.79% for SPY.
Over three years, BSV compounded at +4.28% per year against +21.40% for SPY; over five years the annualized figures are +1.59% and +13.37% respectively. Across the full 19-year window we track, SPY has the edge at +8.85% annualized vs +0.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.5% for SPY. 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 0.15. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSV charges 0.03% per year while SPY charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, BSV currently yields 3.98% against 1.01% for SPY.
Holdings Overlap
BSV and SPY share 5 holdings out of 3285 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BSV | Weight in SPY | Difference |
|---|---|---|---|
| MMC | 0.03% | 0.13% | 0.10% |
| DUK | 0.00% | 0.15% | 0.15% |
| AFL | 0.01% | 0.09% | 0.08% |
| KDP | Pro | Pro | Pro |
| KVUE | Pro | Pro | Pro |
See all 5 holdings BSV shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, BSV or SPY?
BSV has an expense ratio of 0.03% while SPY charges 0.09%. BSV is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, BSV or SPY?
Over the past year BSV returned +2.34% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), BSV annualized +0.91% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BSV or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs SPY -56.5%.
Should I hold both BSV and SPY?
BSV and SPY have a monthly-return correlation of 0.15, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and SPY?
BSV and SPY share 5 common holdings with a 0.1% weight overlap. Combined, they hold 3285 unique securities.
Which pays a higher dividend, BSV or SPY?
BSV yields 3.98% while SPY yields 1.01%, so BSV currently pays the higher dividend yield.
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