GOVT vs. BSV
GOVT (iShares U.S. Treasury Bond ETF) and BSV (Vanguard Short-Term Bond Index Fund ETF Shares) are both exchange-traded funds - GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index, while BSV is a Short-Term Bond fund tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Both are passively managed. Over the past 10 years, GOVT returned 0.83%/yr vs 1.94%/yr for BSV. A 0.79 correlation means they provide meaningful diversification when combined. GOVT charges 0.05%/yr vs 0.03%/yr for BSV.
Performance
GOVT vs. BSV - Performance Comparison
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Returns By Period
In the year-to-date period, GOVT achieves a 0.18% return, which is significantly lower than BSV's 0.48% return. Over the past 10 years, GOVT has underperformed BSV with an annualized return of 0.83%, while BSV has yielded a comparatively higher 1.94% annualized return.
GOVT
- 1D
- 0.07%
- 1M
- 1.02%
- YTD
- 0.18%
- 6M
- 0.42%
- 1Y
- 3.71%
- 3Y*
- 2.99%
- 5Y*
- -0.38%
- 10Y*
- 0.83%
BSV
- 1D
- 0.06%
- 1M
- 0.47%
- YTD
- 0.48%
- 6M
- 0.76%
- 1Y
- 3.74%
- 3Y*
- 4.57%
- 5Y*
- 1.70%
- 10Y*
- 1.94%
GOVT vs. BSV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 0.18% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 0.48% | 6.00% | 3.78% | 4.90% | -5.49% | -1.09% | 4.70% | 4.98% | 1.34% | 1.20% |
Correlation
The correlation between GOVT and BSV is 0.90, 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 | 0.90 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.86 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.81 |
Correlation (All Time) Calculated using the full available price history since Feb 24, 2012 | 0.79 |
The correlation between GOVT and BSV shifts across timeframes, from 0.79 (all time) to 0.90 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
GOVT vs. BSV — Risk / Return Rank
GOVT
BSV
GOVT vs. BSV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Treasury Bond ETF (GOVT) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| GOVT | BSV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.06 | ||
| Sortino ratioReturn per unit of downside risk | -1.80 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.41 | -0.23 |
| Calmar ratioReturn relative to maximum drawdown | 1.31 | 2.91 | -1.61 |
| Martin ratioReturn relative to average drawdown | 3.64 | 9.81 | -6.17 |
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Drawdowns
GOVT vs. BSV - Drawdown Comparison
The maximum GOVT drawdown since its inception was -19.07%, which is greater than BSV's maximum drawdown of -8.54%. Use the drawdown chart below to compare losses from any high point for GOVT and BSV.
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Drawdown Indicators
| GOVT | BSV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.07% | -8.54% | -10.53% |
Max Drawdown (1Y)Largest decline over 1 year | -2.85% | -1.29% | -1.56% |
Max Drawdown (3Y)Largest decline over 3 years | -5.43% | -1.53% | -3.90% |
Max Drawdown (5Y)Largest decline over 5 years | -16.60% | -8.54% | -8.06% |
Max Drawdown (10Y)Largest decline over 10 years | -19.07% | -8.54% | -10.53% |
Current DrawdownCurrent decline from peak | -6.91% | -0.44% | -6.47% |
Average DrawdownAverage peak-to-trough decline | -5.25% | -0.97% | -4.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.02% | 0.38% | +0.64% |
Volatility
GOVT vs. BSV - Volatility Comparison
iShares U.S. Treasury Bond ETF (GOVT) has a higher volatility of 1.15% compared to Vanguard Short-Term Bond Index Fund ETF Shares (BSV) at 0.57%. This indicates that GOVT'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.
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Volatility by Period
| GOVT | BSV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.15% | 0.57% | +0.58% |
Volatility (6M)Calculated over the trailing 6-month period | 2.58% | 1.28% | +1.30% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.56% | 1.79% | +1.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.04% | 2.73% | +3.31% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.23% | 2.38% | +2.85% |
GOVT vs. BSV - Expense Ratio Comparison
GOVT has a 0.05% 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
GOVT vs. BSV - Dividend Comparison
GOVT's dividend yield for the trailing twelve months is around 3.58%, less than 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% |
GOVT iShares U.S. Treasury Bond ETF | 3.58% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
Frequently Asked Questions
GOVT and BSV have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GOVT has higher volatility (1.15%) compared to BSV (0.57%). In terms of maximum drawdown, GOVT dropped -19.07% vs BSV's -8.54%.
On 10-year performance, BSV leads with 1.94% vs 0.83% for GOVT. On fees, BSV is cheaper at 0.03% per year. On volatility, BSV has been the lower-risk option at 0.57%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, BSV has performed better with a 1.94% return vs 0.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BSV is cheaper with a 0.03% expense ratio, compared with 0.05% for GOVT.
BSV has the higher dividend yield at 3.99%, compared with 3.58% for GOVT.
GOVT is categorized as Government Bonds, while BSV is Short-Term Bond. GOVT tracks ICE U.S. Treasury Core Bond Index, while BSV tracks Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.05% for GOVT and 0.03% for BSV.
BSV currently has the higher Sharpe Ratio (2.10 vs 1.05), 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.
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