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

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 bonds expiring 3-5 yearsThe lone drawback for BSV is the issuer's lack of transparency 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. (Insight updated 06/30/2014)

1 Year

Performance [as of 12/18/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

BSV
-0.10% 0.44% 1.28% 0.96% 1.13% 1.91% --

BSV (NAV)
-0.19% 0.41% 1.23% 0.96% -- -- --

-- -- -- -- -- -- --
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

Issuer Vanguard

A company that produces and manages ETFs.

Inception Date 04/03/07

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

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

Expense Ratio 0.10%

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

Assets Under Management $15.45 B

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

Average Daily $ Volume $90.46 M

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

(60-Day) | 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." href="javascript:void(0)" class="term">Average Spread (60-Day) 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

Duration 2.7

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

Weighted Avg. Maturity 2.7 Years

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

Yield to Maturity 1.15%

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

Next Ex-Dividend Date --

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

Number of Holdings 2,062

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

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

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

Index Weighting Methodology Market Value

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

Index Selection Methodology Market Value

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

Segment Benchmark 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

Top Competing ETFs ISTB

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

BSV Commentary & News

23 September 2014
Bond Volatility Up, ETF Investors Beware | ETF.com
Cinthia Murphy

BSV ETF.com Efficiency Insight

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. (Insight updated 06/30/2014)

Total Return - 09/30/2014

Performance [as of 09/30/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

BSV
-0.15% -0.03% 0.98% 1.04% 1.16% 2.03% --

BSV (NAV)
-0.20% -0.07% 0.94% 1.01% 1.18% 2.10% --

Barclays U.S. 1-5 Year Government/Credit Float Adjusted Index
-0.22% -0.05% 1.01% 1.15% 1.32% 2.23% 3.34%

Barclays US 1-3 Year Government/Credit Index
-0.08% 0.04% 0.60% 0.77% 0.92% 1.45% 2.85%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

BSV Portfolio Management

Expense Ratio 0.10%

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

(12 Mo) | 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." href="javascript:void(0)" class="term">Median Tracking Difference (12 Mo) -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.

BSV Tax exposures

Max LT/ST Capital Gains Rate 20.00% / 39.60%

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

Tax on Distributions N/A

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

Distributes K1 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

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

OTC Derivative Use No

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

Securities Lending Active No

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

ETN Counterparty N/A

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

ETN Counterparty Risk N/A

The risk of default by the ETN counterparty.

Fund Closure Risk Low

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

Portfolio Disclosure Monthly

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

BSV ETF.com Tradability Insight

BSV’s $14B asset base provides plenty of liquidity for traders of all shapes and sizes. About $70M 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. (Insight updated 06/30/2014)

Average Spread

Premium/Discount

Volume

BSV ETF.com/ Block LiquidityAs of 12/19/2014

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

Avg. Daily Share Volume 1,126,792

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

Average Daily $ Volume $90.46 M

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

Median Daily Share Volume 1,016,664

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

(%) | 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." href="javascript:void(0)" class="term">Average Spread (%) 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.

($) | The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars." href="javascript:void(0)" class="term">Average Spread ($) $0.01

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

(12 Mo) | 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." href="javascript:void(0)" class="term">Max. Premium / Discount (12 Mo) 0.20% / -0.04%

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.

Impediment to Creations 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.

Market Hours Overlap 100.00%

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

(Shares) | 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." href="javascript:void(0)" class="term">Creation Unit Size (Shares) 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.

(45 Day Average) | 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." href="javascript:void(0)" class="term">Creation Unit/Day (45 Day Average) 10.17

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.

(%) | The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit." href="javascript:void(0)" class="term">Creation Unit Cost (%) 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.

Open Interest on ETF Options 104

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

ETF.com Implied Liquidity 5

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

BSV ETF.com Fit Insight

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. (Insight updated 06/30/2014)

BSV Sector/Industry Breakdown

Sector BSV Segment Benchmark
Treasury 63.75% 60.90%

Corporate 19.81% 24.59%

Non-Corporate 8.24% 7.89%

Agency 8.20% 6.33%

Cash 0.00% 0.30%

BSV Top 5 Countries

United States 86.68% 86.27%

Supranational 4.02% 3.61%

Canada 1.98% 1.85%

Germany 1.81% 1.50%

United Kingdom 1.00% 1.16%

BSV Top 5 Currencies

USD 100.00% 100.00%

Developed Market Currencies 100.00% 100.00%

BSV Performance Statistics

Beta 1.96

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.

Annualized Alpha -0.37%

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

Up Beta 1.88

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.

Down Beta 1.83

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.

Downside Standard Deviation 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

Sector BSV Segment Benchmark
Weighted Avg. Maturity 2.00 2.75

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

Effective Duration 1.94 2.66

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

(2 year) | A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 2 year interest rates holding other rates constant." href="javascript:void(0)" class="term">Key Rate Duration (2 year) 0.98 0.60

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

(10 year) | A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 10 year interest rates holding other rates constant." href="javascript:void(0)" class="term">Key Rate Duration (10 year) 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.

Yield to Maturity 0.77% 1.15%

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

Credit Spread Duration 0.70 1.05

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

Concentration Low Low

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

Number of Holdings 1,573 2,062

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.

Weighted Avg. Credit AA- A+

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

BSV Maturity Distribution

0 - 1 Year 0.01% 3.15%

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

1 - 3 Years 98.61% 57.97%

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

3 - 5 Years 1.37% 37.41%

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

5 - 7 Years 0.00% 1.48%

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

7 - 10 Years 0.00% 0.00%

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

10+ Years 0.00% 0.00%

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

BSV Credit Breakdown

AAA 77.89% 72.56%

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

AA 4.45% 4.75%

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

A 9.99% 12.86%

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

BBB 7.67% 9.85%

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

BB 0.00% 0.00%

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

B 0.00% 0.00%

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

CCC 0.00% 0.00%

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

CC 0.00% 0.00%

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

C 0.00% 0.00%

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