Fixed Income: U.S. - Government/Credit Investment Grade Short-Term

BSV Top Performer Intra-day
Price $79.45
Today’s Change -0.01%(-0.01)
4:00pm 11/24/2017
BSV Bottom Performer Intra-day
Price $79.45
Today’s Change -0.01%(-0.01)
4:00pm 11/24/2017
  • Overview
  • Efficiency
  • Tradability
  • Fit

ETF.com Insight

[As of 11/29/14] Two ETFs—BSV and ISTB—offer broad exposure to the US short-term bond market, but only one (BSV) has attracted a meaningful asset base. This is likely due to theISTB for transparency and BSV for liquidity big lag between the launch of BSV (1/1/10) and ISTB (10/27/12). The $16B currently invested in BSV (vs. $250M for ISTB) provides a liquidity base that dwarfs that of ISTB, which is much more significant than the small gap between the two when it comes to headline expense ratios. BSV’s expense ratio is 2 bps lower than the 12 bps charged by ISTB. However, BSV trades just 1 bp wide on a daily basis, while ISTB trades with spreads that average 14 bps, so the round-trip cost of BSV is drastically lower than the same cost of ISTB.

BSV and ISTB track essentially the same index, the Barclays U.S. Government/Credit 1-5 Year Bond Index. (BSV tracks the float-adjusted version of the index) Therefore, it is not surprising that they offer almost identical exposures. Their portfolios are both a bit longer than our benchmark with higher yields, duration risk and credit risk. Despite, BSV and ISTB provide very similar exposures and investors will have to determine which portfolio best fits their specific needs: ISTB for transparency and BSV for liquidity. (Insight updated 11/22/17)

All Funds (1)

BSV $23.42 B 23421045629.99 Big and Liquid

B 76
E
93
93
T
75
75
F
76
76

ETF.com Grade as 11/16/17

Fixed Income: U.S. - Government/Credit Investment Grade Short-Term

1 Year Total Return NAV
Performance  [as of 11/21/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: Barclays US 1-3 Year Government/Credit Index--------------
B 75.510211BSV23421045629.99BSVVanguard Short-Term Bond ETF-0.35%-0.86%0.83%0.77%1.05%0.96%2.37%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

ETF.com Efficiency Insight

[As of 11/29/14] BSV is a large, well-established fund ($16B) with a cheap expense ratio and a track record of sound portfolio management. It has not exhibited much in the way of volatilityBSV is a large, well-established fund relative to its underlying index, and its issuer has not made any outsized capital gains distribution since launch. The lone drawback is BSV's issuer’s monthly holdings disclosures, which prevents investors from seeing which bonds they hold on a daily basis.

ISTB, on the other hand, is only a year old with just over $250M in assets. It charges 12 bps a year, which is just 2 bps more than what BSV charges. To date, it has been well managed, tracking its index tightly and consistently. It also gets points for its daily holdings disclosure, something that distinguishes it from BSV. (Insight updated 11/22/17)

All Funds (1)

93
92.605693

ETF.com Grade as 11/16/17

Fixed Income: U.S. - Government/Credit Investment Grade Short-Term

Tracking Difference (12 Month)

Ticker Expense Ratio Median Max. Upside Max. Downside Max LT/ST Cap Gains Rate Rule Legal Structure Fund Closure Risk Efficiency
BSV Vanguard Short-Term Bond ETF 0.07% 0.00% 0.13% -0.53% 20.00% / 39.60% Low 92.605693

ETF.com Tradability Insight

[As of 11/29/14] Thanks to a huge advantage in AUM, BSV is a significantly easier fund to trade. More than $100M worth of BSV changes hands most days at spreads that average just 1 bp. InBSV can be traded in any size at any time contrast, ISTB attracts only $2M in volume most days at 14 bp average spread.

Market orders in BSV are therefore unlikely to hurt you, while anything other than tightly placed limit orders will be subject to high costs in ISTB.

Trading larger blocks of ISTB may be a bit easier than trading retail quantities, while BSV can be traded in any size at any time. (Insight updated 11/22/17)

All Funds (1)

75
75

ETF.com Grade as 11/16/17

Fixed Income: U.S. - Government/Credit Investment Grade Short-Term

Ticker Median Daily Volume ($) Average Spread Creation Unit/Day Market Hours Overlap Underlying Volume/Unit % Creation Cost Per Unit (%) Impediment to Creations Score - Tradability
BSV Vanguard Short-Term Bond ETF $79.29 M 0.01% 9.96 100.00% -- 0.00%% None 75
Spread History
Premium/Discount History

ETF.com/ Block Liquidity

BSV
5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

[As of 11/29/14] BSV and ISTB track essentially the same index. Therefore, it should come with no surprise that they have almost identical key portfolio statistics and Fit scores. There istrack essentially the same index simply no meaningful difference between them. However, same can’t be said for our benchmark.

Both funds have a broader maturity hunting ground than our benchmark, holding bonds with 1-5 years remaining in maturity. Our benchmark only holds bonds with 1-3 years remaining in maturity. Therefore both funds have longer weighted average maturity and duration. They also overweight bonds with slightly lower credit qualities, resulting in lower portfolio credit ratings. In combination, BSV and ISTB offer higher yields than our benchmark by taking on more interest rate and credit risk.

Overall, BSV and ISTB are both valid and representative takes on the market, but investors still need to determine which portfolio best fits their specific needs: ISTB for transparency and BSV for liquidity. (Insight updated 11/22/17)

All Funds (1)

76
75.510211

ETF.com Grade as 11/16/17

Fixed Income: U.S. - Government/Credit Investment Grade Short-Term