VIG vs. BSV
VIG (Vanguard Dividend Appreciation ETF) and BSV (Vanguard Short-Term Bond Index Fund ETF Shares) are both exchange-traded funds - VIG is a Dividend fund tracking the S&P U.S. Dividend Growers 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, VIG returned 13.05%/yr vs 1.91%/yr for BSV. At a correlation of -0.12, they often move in opposite directions. VIG charges 0.04%/yr vs 0.03%/yr for BSV.
Performance
VIG vs. BSV - Performance Comparison
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Returns By Period
In the year-to-date period, VIG achieves a 6.58% return, which is significantly higher than BSV's 0.10% return. Over the past 10 years, VIG has outperformed BSV with an annualized return of 13.05%, while BSV has yielded a comparatively lower 1.91% annualized return.
VIG
- 1D
- 0.03%
- 1M
- 2.32%
- YTD
- 6.58%
- 6M
- 6.47%
- 1Y
- 18.31%
- 3Y*
- 16.04%
- 5Y*
- 10.62%
- 10Y*
- 13.05%
BSV
- 1D
- -0.01%
- 1M
- -0.38%
- YTD
- 0.10%
- 6M
- 0.53%
- 1Y
- 3.66%
- 3Y*
- 4.42%
- 5Y*
- 1.57%
- 10Y*
- 1.91%
VIG vs. BSV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VIG Vanguard Dividend Appreciation ETF | 6.58% | 14.17% | 16.99% | 14.51% | -9.80% | 23.76% | 15.43% | 29.62% | -2.08% | 22.22% |
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 0.10% | 6.00% | 3.78% | 4.90% | -5.49% | -1.09% | 4.70% | 4.98% | 1.34% | 1.20% |
Correlation
The correlation between VIG and BSV is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.28 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.17 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.17 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.04 |
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007 | -0.12 |
The correlation between VIG and BSV shifts across timeframes, from -0.12 (all time) to 0.28 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VIG vs. BSV — Risk / Return Rank
VIG
BSV
VIG vs. BSV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Dividend Appreciation ETF (VIG) 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.
| VIG | BSV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.23 | ||
| Sortino ratioReturn per unit of downside risk | -0.65 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.39 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 2.33 | 2.85 | -0.52 |
| Martin ratioReturn relative to average drawdown | 9.37 | 9.83 | -0.46 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VIG | BSV | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.82 | 2.06 | -0.23 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.75 | 0.58 | +0.17 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.82 | 0.81 | +0.01 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.60 | 0.85 | -0.25 |
Drawdowns
VIG vs. BSV - Drawdown Comparison
The maximum VIG drawdown since its inception was -46.81%, which is greater than BSV's maximum drawdown of -8.54%. Use the drawdown chart below to compare losses from any high point for VIG and BSV.
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Drawdown Indicators
| VIG | BSV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.81% | -8.54% | -38.27% |
Max Drawdown (1Y)Largest decline over 1 year | -7.91% | -1.29% | -6.62% |
Max Drawdown (3Y)Largest decline over 3 years | -14.95% | -1.53% | -13.42% |
Max Drawdown (5Y)Largest decline over 5 years | -20.39% | -8.54% | -11.85% |
Max Drawdown (10Y)Largest decline over 10 years | -31.72% | -8.54% | -23.18% |
Current DrawdownCurrent decline from peak | -1.34% | -0.82% | -0.52% |
Average DrawdownAverage peak-to-trough decline | -5.51% | -0.97% | -4.54% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.96% | 0.37% | +1.59% |
Volatility
VIG vs. BSV - Volatility Comparison
Vanguard Dividend Appreciation ETF (VIG) has a higher volatility of 2.42% compared to Vanguard Short-Term Bond Index Fund ETF Shares (BSV) at 0.54%. This indicates that VIG'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
| VIG | BSV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.42% | 0.54% | +1.88% |
Volatility (6M)Calculated over the trailing 6-month period | 7.68% | 1.28% | +6.40% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.10% | 1.79% | +8.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.24% | 2.73% | +11.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.06% | 2.38% | +13.68% |
VIG vs. BSV - Expense Ratio Comparison
VIG has a 0.04% 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
VIG vs. BSV - Dividend Comparison
VIG's dividend yield for the trailing twelve months is around 1.48%, less 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% |
VIG Vanguard Dividend Appreciation ETF | 1.48% | 1.62% | 1.73% | 1.88% | 1.96% | 1.55% | 1.63% | 1.71% | 2.08% | 1.88% | 2.14% | 2.34% |
Frequently Asked Questions
VIG and BSV have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VIG has higher volatility (2.42%) compared to BSV (0.54%). In terms of maximum drawdown, VIG dropped -46.81% vs BSV's -8.54%.
On 10-year performance, VIG leads with 13.05% vs 1.91% for BSV. On fees, BSV is cheaper at 0.03% per year. On volatility, BSV has been the lower-risk option at 0.54%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VIG has performed better with a 13.05% return vs 1.91%. 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 0.04% for VIG.
BSV has the higher dividend yield at 4.00%, compared with 1.48% for VIG.
VIG is categorized as Dividend, while BSV is Short-Term Bond. VIG tracks S&P U.S. Dividend Growers Index, while BSV tracks Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Their fees differ too: 0.04% for VIG and 0.03% for BSV.
BSV currently has the higher Sharpe Ratio (2.06 vs 1.82), 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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