DFSD vs. BSV

Last updated Jun 3, 2026

DFSD (Dimensional Short-Duration Fixed Income ETF) and BSV (Vanguard Short-Term Bond Index Fund ETF Shares) are both Short-Term Bond funds. DFSD is actively managed, while BSV is passively managed. Over the past 3 years, DFSD returned 5.37%/yr vs 4.44%/yr for BSV. Their correlation of 0.84 suggests significant overlap in exposure. DFSD charges 0.16%/yr vs 0.03%/yr for BSV.

Performance

DFSD vs. BSV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Short-Duration Fixed Income ETF (DFSD) and Vanguard Short-Term Bond Index Fund ETF Shares (BSV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFSD achieves a 0.75% return, which is significantly higher than BSV's 0.37% return.

DFSD

• 1D: 0.00%
• 1M: 0.28%
• YTD: 0.75%
• 6M: 1.09%
• 1Y: 4.36%
• 3Y*: 5.37%
• 5Y*: —
• 10Y*: —

BSV

• 1D: -0.01%
• 1M: -0.02%
• YTD: 0.37%
• 6M: 0.67%
• 1Y: 3.70%
• 3Y*: 4.44%
• 5Y*: 1.66%
• 10Y*: 1.96%

*Multi-year figures are annualized to reflect compound growth (CAGR)

DFSD vs. BSV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DFSD Dimensional Short-Duration Fixed Income ETF	0.75%	6.59%	4.60%	6.09%	-5.87%	-0.02%
BSV Vanguard Short-Term Bond Index Fund ETF Shares	0.37%	6.00%	3.78%	4.90%	-5.49%	-0.05%

Correlation

The correlation between DFSD and BSV is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (All Time) Calculated using the full available price history since Nov 17, 2021	0.84

The correlation between DFSD and BSV has been stable across timeframes, ranging from 0.82 to 0.91 - a consistent structural relationship.

Return for Risk

DFSD vs. BSV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DFSD

DFSD Risk / Return Rank: 69
DFSD Sharpe Ratio Rank: 69
DFSD Sortino Ratio Rank: 78
DFSD Omega Ratio Rank: 76
DFSD Calmar Ratio Rank: 58
DFSD Martin Ratio Rank: 62

BSV

BSV Risk / Return Rank: 62
BSV Sharpe Ratio Rank: 60
BSV Sortino Ratio Rank: 72
BSV Omega Ratio Rank: 64
BSV Calmar Ratio Rank: 56
BSV Martin Ratio Rank: 56

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DFSD vs. BSV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Short-Duration Fixed Income ETF (DFSD) and Vanguard Short-Term Bond Index Fund ETF Shares (BSV). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	DFSD	BSV	Difference
Sharpe ratio Return per unit of total volatility	2.31	2.05	+0.26
Sortino ratio Return per unit of downside risk	3.57	3.30	+0.26
Omega ratio Gain probability vs. loss probability	1.46	1.39	+0.06
Calmar ratio Return relative to maximum drawdown	2.91	2.82	+0.10
Martin ratio Return relative to average drawdown	11.33	9.96	+1.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFSD vs. BSV - Sharpe Ratio Comparison

The current DFSD Sharpe Ratio is 2.31, which is comparable to the BSV Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of DFSD and BSV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DFSD	BSV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.31	2.05	+0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.61	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.83	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.93	0.86	+0.07

Drawdowns

DFSD vs. BSV - Drawdown Comparison

The maximum DFSD drawdown since its inception was -8.45%, roughly equal to the maximum BSV drawdown of -8.54%. Use the drawdown chart below to compare losses from any high point for DFSD and BSV.

Drawdown Indicators

	DFSD	BSV	Difference
Max Drawdown Largest peak-to-trough decline	-8.45%	-8.54%	+0.09%
Max Drawdown (1Y) Largest decline over 1 year	-1.47%	-1.29%	-0.18%
Max Drawdown (3Y) Largest decline over 3 years	-1.47%	-1.53%	+0.06%
Max Drawdown (5Y) Largest decline over 5 years	—	-8.54%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-8.54%	—
Current Drawdown Current decline from peak	-0.31%	-0.55%	+0.24%
Average Drawdown Average peak-to-trough decline	-2.07%	-0.97%	-1.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.38%	0.36%	+0.02%

Volatility

DFSD vs. BSV - Volatility Comparison

Dimensional Short-Duration Fixed Income ETF (DFSD) has a higher volatility of 0.63% compared to Vanguard Short-Term Bond Index Fund ETF Shares (BSV) at 0.54%. This indicates that DFSD's price experiences larger fluctuations and is considered to be riskier than BSV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFSD	BSV	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.63%	0.54%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	1.46%	1.26%	+0.20%
Volatility (1Y) Calculated over the trailing 1-year period	1.90%	1.81%	+0.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.78%	2.72%	+0.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.78%	2.37%	+0.41%

DFSD vs. BSV - Expense Ratio Comparison

DFSD has a 0.16% expense ratio, which is higher than BSV's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

DFSD vs. BSV - Dividend Comparison

DFSD's dividend yield for the trailing twelve months is around 3.97%, which matches BSV's 3.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BSV Vanguard Short-Term Bond Index Fund ETF Shares	3.99%	3.83%	3.38%	2.46%	1.50%	1.45%	1.79%	2.29%	1.99%	1.65%	1.48%	1.40%
DFSD Dimensional Short-Duration Fixed Income ETF	3.97%	4.12%	4.81%	3.89%	2.12%	0.11%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFSD and BSV in my portfolio?

With a correlation of 0.91, DFSD and BSV move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, DFSD or BSV?

DFSD has higher volatility (0.63%) compared to BSV (0.54%). In terms of maximum drawdown, DFSD dropped -8.45% vs BSV's -8.54%.

Which ETF is better, DFSD or BSV?

On 3-year performance, DFSD leads with 5.37% vs 4.44% for BSV. On fees, BSV is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFSD or BSV?

Over the 3-year period, DFSD has performed better with a 5.37% return vs 4.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFSD or BSV?

BSV is cheaper with a 0.03% expense ratio, compared with 0.16% for DFSD.

Which ETF pays a higher dividend yield, DFSD or BSV?

BSV has the higher dividend yield at 3.99%, compared with 3.97% for DFSD.

What is the main difference between DFSD and BSV?

They also come from different issuers: Dimensional and Vanguard. Their fees differ too: 0.16% for DFSD and 0.03% for BSV.

Which has better risk-adjusted returns?

DFSD currently has the higher Sharpe Ratio (2.31 vs 2.05), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.