ZTWO vs. BSV
ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) and BSV (Vanguard Short-Term Bond Index Fund ETF Shares) are both Short-Term Bond funds - ZTWO tracks the ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross while BSV tracks the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Both are passively managed. Over the past year, ZTWO returned 3.63% vs 3.18% for BSV. Their correlation of 0.87 suggests significant overlap in exposure. ZTWO charges 0.15%/yr vs 0.03%/yr for BSV.
Performance
ZTWO vs. BSV - Performance Comparison
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Returns By Period
In the year-to-date period, ZTWO achieves a 0.93% return, which is significantly higher than BSV's 0.32% return.
ZTWO
- 1D
- 0.06%
- 1M
- 0.26%
- YTD
- 0.93%
- 6M
- 1.13%
- 1Y
- 3.63%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
BSV
- 1D
- 0.10%
- 1M
- 0.21%
- YTD
- 0.32%
- 6M
- 0.51%
- 1Y
- 3.18%
- 3Y*
- 4.51%
- 5Y*
- 1.68%
- 10Y*
- 1.91%
ZTWO vs. BSV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF | 0.93% | 5.49% | 0.36% |
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 0.32% | 6.00% | 0.39% |
Correlation
The correlation between ZTWO and BSV is 0.86, 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 | 0.86 |
Correlation (All Time) Calculated using the full available price history since Dec 19, 2024 | 0.87 |
The correlation between ZTWO and BSV has been stable across timeframes, ranging from 0.86 to 0.87 - a consistent structural relationship.
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Return for Risk
ZTWO vs. BSV — Risk / Return Rank
ZTWO
BSV
ZTWO vs. BSV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) 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.
| ZTWO | BSV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.97 | ||
| Sortino ratioReturn per unit of downside risk | +1.55 | ||
| Omega ratioGain probability vs. loss probability | 1.55 | 1.33 | +0.22 |
| Calmar ratioReturn relative to maximum drawdown | 3.90 | 2.48 | +1.43 |
| Martin ratioReturn relative to average drawdown | 18.28 | 8.14 | +10.14 |
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Drawdowns
ZTWO vs. BSV - Drawdown Comparison
The maximum ZTWO drawdown since its inception was -0.93%, smaller than the maximum BSV drawdown of -8.54%. Use the drawdown chart below to compare losses from any high point for ZTWO and BSV.
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Drawdown Indicators
| ZTWO | BSV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -0.93% | -8.54% | +7.61% |
Max Drawdown (1Y)Largest decline over 1 year | -0.93% | -1.29% | +0.36% |
Max Drawdown (3Y)Largest decline over 3 years | — | -1.53% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -8.54% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -8.54% | — |
Current DrawdownCurrent decline from peak | -0.22% | -0.60% | +0.38% |
Average DrawdownAverage peak-to-trough decline | -0.10% | -0.97% | +0.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.20% | 0.39% | -0.19% |
Volatility
ZTWO vs. BSV - Volatility Comparison
The current volatility for F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) is 0.46%, while Vanguard Short-Term Bond Index Fund ETF Shares (BSV) has a volatility of 0.60%. This indicates that ZTWO experiences smaller price fluctuations and is considered to be less risky 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
| ZTWO | BSV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.46% | 0.60% | -0.14% |
Volatility (6M)Calculated over the trailing 6-month period | 1.02% | 1.33% | -0.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.34% | 1.82% | -0.48% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.50% | 2.73% | -1.23% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.50% | 2.38% | -0.88% |
ZTWO vs. BSV - Expense Ratio Comparison
ZTWO has a 0.15% 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
ZTWO vs. BSV - Dividend Comparison
ZTWO's dividend yield for the trailing twelve months is around 4.12%, more 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% |
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF | 4.12% | 4.31% | 0.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
ZTWO and BSV have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BSV has higher volatility (0.60%) compared to ZTWO (0.46%). In terms of maximum drawdown, ZTWO dropped -0.93% vs BSV's -8.54%.
On 1-year performance, ZTWO leads with 3.63% vs 3.18% for BSV. On fees, BSV is cheaper at 0.03% per year. On volatility, ZTWO has been the lower-risk option at 0.46%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, ZTWO has performed better with a 3.63% return vs 3.18%. 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 0.15% for ZTWO.
ZTWO has the higher dividend yield at 4.12%, compared with 3.99% for BSV.
ZTWO tracks ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross, while BSV tracks Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. They also come from different issuers: F/m and Vanguard. Their fees differ too: 0.15% for ZTWO and 0.03% for BSV.
ZTWO currently has the higher Sharpe Ratio (2.73 vs 1.76), 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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