VSMIX vs. BSV

Last updated Jun 4, 2026

VSMIX (Vanguard Short-Term Investment-Grade Fund Investor Shares) and BSV (Vanguard Short-Term Bond Index Fund ETF Shares) are both Short-Term Bond funds from Vanguard. Over the past 10 years, VSMIX returned 18.06%/yr vs 1.95%/yr for BSV. At a correlation of -0.18, they often move in opposite directions. VSMIX charges 0.20%/yr vs 0.03%/yr for BSV.

Performance

VSMIX vs. BSV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX) 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, VSMIX achieves a 31.47% return, which is significantly higher than BSV's 0.29% return. Over the past 10 years, VSMIX has outperformed BSV with an annualized return of 18.06%, while BSV has yielded a comparatively lower 1.95% annualized return.

VSMIX

• 1D: 3.56%
• 1M: 7.76%
• YTD: 31.47%
• 6M: 33.25%
• 1Y: 62.50%
• 3Y*: 33.02%
• 5Y*: 19.87%
• 10Y*: 18.06%

BSV

• 1D: -0.08%
• 1M: 0.06%
• YTD: 0.29%
• 6M: 0.52%
• 1Y: 3.68%
• 3Y*: 4.41%
• 5Y*: 1.62%
• 10Y*: 1.95%

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

VSMIX vs. BSV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSMIX Vanguard Short-Term Investment-Grade Fund Investor Shares	31.47%	18.01%	24.82%	23.14%	4.58%	36.67%	11.14%	32.32%	-25.45%	18.47%
BSV Vanguard Short-Term Bond Index Fund ETF Shares	0.29%	6.00%	3.78%	4.90%	-5.49%	-1.09%	4.70%	4.98%	1.34%	1.20%

Correlation

The correlation between VSMIX and BSV is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.12
Correlation (5Y) Calculated over the trailing 5-year period	0.06
Correlation (10Y) Calculated over the trailing 10-year period	-0.08
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007	-0.18

The correlation between VSMIX and BSV shifts across timeframes, from -0.18 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VSMIX vs. BSV — Risk / Return Rank

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

VSMIX

VSMIX Risk / Return Rank: 89
VSMIX Sharpe Ratio Rank: 93
VSMIX Sortino Ratio Rank: 84
VSMIX Omega Ratio Rank: 80
VSMIX Calmar Ratio Rank: 95
VSMIX Martin Ratio Rank: 93

BSV

BSV Risk / Return Rank: 61
BSV Sharpe Ratio Rank: 59
BSV Sortino Ratio Rank: 71
BSV Omega Ratio Rank: 63
BSV Calmar Ratio Rank: 57
BSV Martin Ratio Rank: 57

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.

VSMIX vs. BSV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX) 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.

	VSMIX	BSV	Difference
Sharpe ratio: Return per unit of total volatility	3.21	2.05	+1.16
Sortino ratio: Return per unit of downside risk	3.98	3.29	+0.69
Omega ratio: Gain probability vs. loss probability	1.53	1.39	+0.13
Calmar ratio: Return relative to maximum drawdown	5.82	2.87	+2.95
Martin ratio: Return relative to average drawdown	20.62	10.07	+10.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSMIX vs. BSV - Sharpe Ratio Comparison

The current VSMIX Sharpe Ratio is 3.21, which is higher than the BSV Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of VSMIX 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

	VSMIX	BSV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.21	2.05	+1.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.86	0.60	+0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.68	0.83	-0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.85	-0.37

Drawdowns

VSMIX vs. BSV - Drawdown Comparison

The maximum VSMIX drawdown since its inception was -57.53%, which is greater than BSV's maximum drawdown of -8.54%. Use the drawdown chart below to compare losses from any high point for VSMIX and BSV.

Drawdown Indicators

	VSMIX	BSV	Difference
Max Drawdown Largest peak-to-trough decline	-57.53%	-8.54%	-48.99%
Max Drawdown (1Y) Largest decline over 1 year	-11.39%	-1.29%	-10.10%
Max Drawdown (3Y) Largest decline over 3 years	-25.26%	-1.53%	-23.73%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-8.54%	-16.72%
Max Drawdown (10Y) Largest decline over 10 years	-57.53%	-8.54%	-48.99%
Current Drawdown Current decline from peak	0.00%	-0.63%	+0.63%
Average Drawdown Average peak-to-trough decline	-9.52%	-0.97%	-8.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.20%	0.37%	+2.83%

Volatility

VSMIX vs. BSV - Volatility Comparison

Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX) has a higher volatility of 6.33% compared to Vanguard Short-Term Bond Index Fund ETF Shares (BSV) at 0.52%. This indicates that VSMIX'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

	VSMIX	BSV	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.33%	0.52%	+5.81%
Volatility (6M) Calculated over the trailing 6-month period	15.87%	1.26%	+14.61%
Volatility (1Y) Calculated over the trailing 1-year period	20.66%	1.81%	+18.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.18%	2.72%	+20.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.72%	2.37%	+24.35%

VSMIX vs. BSV - Expense Ratio Comparison

VSMIX has a 0.20% 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

VSMIX vs. BSV - Dividend Comparison

VSMIX's dividend yield for the trailing twelve months is around 6.49%, 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%
VSMIX Vanguard Short-Term Investment-Grade Fund Investor Shares	6.49%	8.53%	7.40%	4.71%	9.53%	15.84%	0.40%	2.37%	26.83%	15.94%	1.65%	10.91%

Frequently Asked Questions

Can I hold both VSMIX and BSV in my portfolio?

VSMIX and BSV have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSMIX or BSV?

VSMIX has higher volatility (6.33%) compared to BSV (0.52%). In terms of maximum drawdown, VSMIX dropped -57.53% vs BSV's -8.54%.

Which has better risk-adjusted returns?

VSMIX currently has the higher Sharpe Ratio (3.21 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.