Vanguard Short-Term Bond ETF

BSV

Börsenwert 45,6 Mrd. $

Trading activity on the Tradeweb European ETF marketplace reached EUR 69 billion in September, the second-highest level recorded for the month. Six of the ten most actively traded ETFs in September were equity-based, with two gold ETCs and two short-dated fixed income funds making up the remainder. Total consolidated U.S. ETF notional value traded in September reached USD 122 billion, up 52% year-over-year.

ETFs like SHY could benefit as the Fed hikes rates, with short-term debt offering rising yields and limited duration risk.

The default bond allocation in most target-date funds, robo portfolios, and 401(k) menus is Vanguard Total Bond Market ETF (NYSEARCA:BND) or its mutual fund equivalent.

Vanguard Short-Term Bond ETF features a lower expense ratio and a larger assets under management (AUM) than Vanguard Short-Term Tax-Exempt Bond ETF. Vanguard Short-Term Tax-Exempt Bond ETF provides federal tax-exempt income, whereas Vanguard Short-Term Bond ETF targets taxable government and corporate securities.

The Vanguard Short-Term Corporate Bond ETF and Vanguard Short-Term Bond ETF both offer extremely low cost structures with 0.03% expense ratios. The Vanguard Short-Term Corporate Bond ETF provides a higher dividend yield but has experienced a larger maximum drawdown over the last five years.

The ETF market saw a push in capital away from the concentrated U.S. tech sector to defensive broad market exposure, short duration bonds, and commodities. The shift in flows is amplified by the semiconductor market pullback, interest rate uncertainty, and ongoing geopolitical tensions in the Middle East.

Vanguard Short-Term Bond ETF offers a lower expense ratio but a lower dividend yield than iShares 1-5 Year Investment Grade Corporate Bond ETF. iShares 1-5 Year Investment Grade Corporate Bond ETF delivered a 3.90% total return over the last year, outperforming the Vanguard fund.

Vanguard Short-Term Bond ETF provides exposure to corporate and international bonds whereas Schwab Short-Term U.S. Treasury ETF sticks strictly to government debt Both funds share an ultra-low 0.03% expense ratio but the Vanguard fund manages nearly $70.0 billion in assets compared to $12.7 billion for the Schwab fund Schwab Short-Term U.S. Treasury ETF has historically exhibited lower volatility and a shallower maximum drawdown than its Vanguard counterpart

Vanguard Short-Term Bond ETF offers a lower expense ratio and higher trailing dividend yield than Vanguard Short-Term Tax-Exempt Bond ETF. Vanguard Short-Term Bond ETF manages significantly more assets and has a longer operational history than the newer Vanguard Short-Term Tax-Exempt Bond ETF.

A reader asked for my thoughts on BSV. BSV focuses on high-quality, shorter-term treasuries, with sizable investments in quality corporate bonds. I'm seeing somewhat weak fundamentals, without any significant advantages or benefits. Overall risk-return is below-average.