ISTB vs. BSV
ISTB (iShares Core 1-5 Year USD Bond ETF) and BSV (Vanguard Short-Term Bond Index Fund ETF Shares) are both Short-Term Bond funds - ISTB tracks the BBG US Universal 1-5 Year Index (USD) while BSV tracks the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Both are passively managed. Over the past 10 years, ISTB returned 2.23%/yr vs 1.90%/yr for BSV. A 0.77 correlation means they provide meaningful diversification when combined. ISTB charges 0.06%/yr vs 0.03%/yr for BSV.
Performance
ISTB vs. BSV - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, ISTB achieves a 0.44% return, which is significantly higher than BSV's 0.21% return. Over the past 10 years, ISTB has outperformed BSV with an annualized return of 2.23%, while BSV has yielded a comparatively lower 1.90% annualized return.
ISTB
- 1D
- -0.12%
- 1M
- 0.19%
- YTD
- 0.44%
- 6M
- 0.59%
- 1Y
- 3.73%
- 3Y*
- 4.98%
- 5Y*
- 1.90%
- 10Y*
- 2.23%
BSV
- 1D
- -0.12%
- 1M
- 0.11%
- YTD
- 0.21%
- 6M
- 0.37%
- 1Y
- 3.25%
- 3Y*
- 4.47%
- 5Y*
- 1.66%
- 10Y*
- 1.90%
ISTB vs. BSV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 0.44% | 6.36% | 4.37% | 5.56% | -6.08% | -0.71% | 4.75% | 5.61% | 1.02% | 1.72% |
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 0.21% | 6.00% | 3.78% | 4.90% | -5.49% | -1.09% | 4.70% | 4.98% | 1.34% | 1.20% |
Correlation
The correlation between ISTB and BSV is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.96 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012 | 0.77 |
The correlation between ISTB and BSV shifts across timeframes, from 0.77 (all time) to 0.96 (3 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
ISTB vs. BSV — Risk / Return Rank
ISTB
BSV
ISTB vs. BSV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core 1-5 Year USD Bond ETF (ISTB) 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.
| ISTB | BSV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.30 | ||
| Sortino ratioReturn per unit of downside risk | +0.40 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.34 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.98 | 2.53 | +0.45 |
| Martin ratioReturn relative to average drawdown | 10.97 | 8.35 | +2.62 |
Loading charts...
Drawdowns
ISTB vs. BSV - Drawdown Comparison
The maximum ISTB drawdown since its inception was -9.34%, which is greater than BSV's maximum drawdown of -8.54%. Use the drawdown chart below to compare losses from any high point for ISTB and BSV.
Loading charts...
Drawdown Indicators
| ISTB | BSV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.34% | -8.54% | -0.80% |
Max Drawdown (1Y)Largest decline over 1 year | -1.26% | -1.29% | +0.03% |
Max Drawdown (3Y)Largest decline over 3 years | -1.36% | -1.53% | +0.17% |
Max Drawdown (5Y)Largest decline over 5 years | -9.34% | -8.54% | -0.80% |
Max Drawdown (10Y)Largest decline over 10 years | -9.34% | -8.54% | -0.80% |
Current DrawdownCurrent decline from peak | -0.46% | -0.70% | +0.24% |
Average DrawdownAverage peak-to-trough decline | -1.22% | -0.97% | -0.25% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 0.39% | -0.05% |
Volatility
ISTB vs. BSV - Volatility Comparison
iShares Core 1-5 Year USD Bond ETF (ISTB) has a higher volatility of 0.63% compared to Vanguard Short-Term Bond Index Fund ETF Shares (BSV) at 0.59%. This indicates that ISTB'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.
Loading charts...
Volatility by Period
| ISTB | BSV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.63% | 0.59% | +0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 1.36% | 1.33% | +0.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.80% | 1.82% | -0.02% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.80% | 2.73% | +0.07% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.51% | 2.38% | +0.13% |
ISTB vs. BSV - Expense Ratio Comparison
ISTB has a 0.06% 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
ISTB vs. BSV - Dividend Comparison
ISTB's dividend yield for the trailing twelve months is around 4.25%, more than BSV's 4.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 4.00% | 3.83% | 3.38% | 2.46% | 1.50% | 1.45% | 1.79% | 2.29% | 1.99% | 1.65% | 1.48% | 1.40% |
ISTB iShares Core 1-5 Year USD Bond ETF | 4.25% | 4.12% | 3.83% | 2.97% | 2.01% | 1.69% | 2.20% | 2.75% | 2.57% | 2.06% | 1.90% | 1.58% |
Frequently Asked Questions
With a correlation of 0.96, ISTB 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.
ISTB has higher volatility (0.63%) compared to BSV (0.59%). In terms of maximum drawdown, ISTB dropped -9.34% vs BSV's -8.54%.
On 10-year performance, ISTB leads with 2.23% vs 1.90% 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.
Over the 10-year period, ISTB has performed better with a 2.23% return vs 1.90%. 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 0.06% for ISTB.
ISTB has the higher dividend yield at 4.25%, compared with 4.00% for BSV.
ISTB tracks BBG US Universal 1-5 Year Index (USD), 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: 0.06% for ISTB and 0.03% for BSV.
ISTB currently has the higher Sharpe Ratio (2.09 vs 1.79), 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.
Find the right allocation for ISTB and BSV
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer