BSV Fund Description

The Vanguard Short-Term Bond ETF tracks a market-weighted index of US government bonds, investment-grade corporate and investment-grade international dollar-denominated bonds with maturities of 1-5 years.

BSV ETF.com Insight

[As of 3/31/14] BSV is a large, liquid ETF that holds a mix of investment-grade, dollar-denominated debt issued in the US with 1-5 years remaining in maturity. The inclusion of bondsThe lone drawback for BSV is the issuer's lack of transparency expiring 3-5 years from now gives BSV a longer-dated portfolio than our benchmark, which tracks bonds in the 1-3 year bucket. In fact, 36% of BSV is in bonds with 3-5 years to maturity, which gives BSV a weighted average maturity that is longer than our benchmark. This increases interest-rate risk and boosts above that of our benchmark. The exposure comes cheap—just 10 bps a year—and the fund’s 1 bp spreads ensure trading will add little to full, round-trip cost. The lone drawback for BSV is the issuer’s lack of transparency, as holdings are only posted monthly with a two week lag.

1 Year

Performance [as of 08/28/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

BSV
0.20% -0.05% 1.05% 1.65% 1.13% 2.17% -0.05%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

BSV Top 10 Countries

BSV Top 10 Sectors

BSV Top 10 Holdings

BSV Summary Data

Vanguard

A company that produces and manages ETFs.

04/03/07

The first date of a fund's operations, as documented by the issuer.

Open-Ended Fund

The organizational structure of the fund or ETN.

0.10%

The net total annual fee a fund holder pays to the issuer.

$14.71 B

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$78.74 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

0.01%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

BSV Portfolio Data

2.7

Price sensitivity in percentage to a 100 basis point parallel shift (up or down) in interest rates.

2.8 Years

The weighted average of remaining time until maturity for all securities in the portfolio.

0.95%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

--

The date on which a security's price excludes an upcoming dividend.

1,994

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

BSV Index Data

Barclays U.S. 1-5 Year Government/Credit Float Adjusted Index

This is the benchmark an ETF is desigend to track or replicate.

Market Value

A set of rules that the underlying index provider follows to weight its constituent securities.

Market Value

A set of rules that the underlying index provider follows to select its constituent securities.

Barclays US 1-3
Year Government/Credit Index

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to BSV

ISTB

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

BSV ETF.com Efficiency Insight

[As of 3/31/14] BSV is a large, stable fund, with a rock-bottom 10 bp expense ratio. The fund’s tracking has been well managed to date. The only problem is with transparency, as BSV’s issuer posts holdings on a monthly basis, lagged by two weeks, so investors will never know in real time what they’re actually holding.

Total Return

Performance [as of 06/30/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

BSV
-0.04% 0.72% 1.01% 1.73% 1.50% 2.43% 0.72%

BSV (NAV)
-0.05% 0.69% 1.01% 1.75% 1.52% 2.52% 0.69%

Barclays U.S. 1-5 Year Government/Credit Float Adjusted Index
-0.07% 0.70% 1.06% 1.84% 1.64% 2.68% 0.70%

Barclays US 1-3 Year Government/Credit Index
-0.05% 0.36% 0.56% 1.14% 1.00% 1.73% 0.36%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

BSV Portfolio Management

0.10%

The net total annual fee a fund holder pays to the issuer.

-0.11%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

-0.05%

Largest deviation in a positive direction of a fund's returns vs. its underlying index over the past 12 months.

-0.18%

Largest deviation in a negative direction of a fund's returns vs. its underlying index over the past 12 months.

BSV Tax exposures

20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

--

The average capital gains paid out to shareholders in the past 36 months, measured as a percent of net asset value (NAV) at the time.

N/A

IRS treatment of the majority of the fund's distributions.

No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

BSV Fund Structure

Open-Ended Fund

The organizational structure of the fund or ETN.

No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

No

An indicator of whether or not a fund actively lends its portfolio holdings.

100% / 0%

The division of securities lending revenue between the fund and the issuer.

N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

N/A

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Monthly

The frequency of an issuer's disclosure of all fund holdings.

BSV ETF.com Tradability Insight

[As of 3/31/14] BSV’s $14B asset base provides plenty of liquidity for traders of all shapes and sizes. More than $75M worth of BSV shares changes hands daily, at spreads that average just 1 bp. The on-screen liquidity is therefore sufficient for active traders and long-term investors alike, while the underlying portfolio of highly liquid, investment-grade debt securities accommodates block traders as well.

Average Spread

Premium/Discount

Volume

BSV ETF.com/ Block LiquidityAs of 08/29/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of BSV. BSV is rated a 5 out of 5.

BSV Tradability

981,656

It is the daily number of shares traded, averaged over the past 45 trading days.

$78.74 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

870,271

Median number of shares traded over the past 45 trading days.

$69.67 M

Median dollar value of shares traded over the past 45 trading days.

0.01%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

$0.01

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

0.05%

The middle value in the ranked set of all premium/discount values over a maximum 12-month period.

0.16% / -0.02%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

100,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

8.70

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

0.00%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

--

The total number of net outstanding options contracts for an ETF.

$80.23

The total market value of the assets that an ETF holds less fund expenses.

5

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

BSV ETF.com Fit Insight

[As of 3/31/14] BSV picks from a broader maturity pool than our benchmark, including bonds expiring 1-5 years from now compared with our benchmark’s focus on the 1- to 3-year range. Since BSV has 38% of its portfolio in bonds expiring 3-5 years from now, its duration and weighted average maturity are both significantly longer than our benchmark’s. The fund doesn’t take on additional credit risk, but BSV’s increased sensitivity to interest rates boosts its yield.

BSV Sector/Industry Breakdown

BSV Segment Benchmark
63.93% 60.40%
19.60% 24.56%
8.32% 7.93%
8.16% 6.62%
0.00% 0.48%

BSV Top 5 Countries

86.71% 86.39%
3.93% 3.55%
1.96% 1.86%
1.79% 1.57%
0.99% 1.15%

BSV Top 5 Currencies

100.00% 100.00%
100.00% 100.00%

BSV Performance Statistics

0.94

The degree to which the fund and its segment benchmark move up and down in unison.

2.13

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

-0.60%

The excess return of fund relative to ETF.com segment benchmark on a risk adjusted basis. Only reported if statistically significant.

2.18

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

2.04

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.04%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

BSV Holdings Statistics

BSV Segment Benchmark
2.01 2.76

The weighted average of remaining time until maturity for all securities in the portfolio.

1.95 2.67

A measure of interest rate risk. Estimates change in value to the portfolio based on a 1% parallel shift in the yield curve.

0.97 0.59

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 2 year interest rates holding other rates constant.

0.00 0.00

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 10 year interest rates holding other rates constant.

0.60% 0.95%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

0.70 1.08

Price sensitivity in percentage to a 100 basis point change (widening or narrowing) of spread relative to Treasury spot curve.

Low Low

The Herfindahl Index number – a metric of portfolio concentration where higher numbers mean higher concentration of holdings.

1,539 1,994

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

AA- A+

Market–value–weighted average credit quality of the portfolio.

BSV Maturity Distribution

0.02% 3.92%

Percent of the portfolio's exposure to securities with 0 - 1 years until maturity.

98.57% 56.84%

Percent of the portfolio's exposure to securities with 1 - 3 years until maturity.

1.41% 37.85%

Percent of the portfolio's exposure to securities with 3 - 5 years until maturity.

0.00% 1.39%

Percent of the portfolio's exposure to securities with 5 - 7 years until maturity.

0.00% 0.00%

Percent of the portfolio's exposure to securities with 7 - 10 years until maturity

0.00% 0.00%

Percent of the portfolio's exposure to securities with 10+ years until maturity.

BSV Credit Breakdown

77.96% 72.64%

Percent of portfolio's exposure to AAA rated bonds (Investment Grade).

4.50% 4.78%

Percent of portfolio's exposure to AA rated bonds (Investment Grade).

9.73% 12.61%

Percent of portfolio's exposure to A rated bonds (Investment Grade).

7.82% 9.96%

Percent of portfolio's exposure to BBB rated bonds (Investment Grade).

0.00% 0.00%

Percent of portfolio's exposure to BB rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to B rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to CCC rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to CC rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to C rated bonds (High Yield).