--- title: "The BSV ETF Offers Lower Costs and Larger Scale Than the ISTB ETF" type: "News" locale: "en" url: "https://longbridge.com/en/news/282449524.md" description: "The Vanguard Short-Term Bond ETF (BSV) is more cost-effective and has significantly higher assets under management compared to the iShares Core 1-5 Year USD Bond ETF (ISTB). While ISTB offers a higher one-year return and yield, both funds focus on short-term bonds. BSV has an expense ratio of 0.03% versus ISTB's 0.06%, but ISTB's yield is slightly better. Over five years, both funds have underperformed, with modest returns driven by dividends. Investors should consider their fixed-income strategies when choosing between these ETFs." datetime: "2026-04-12T14:30:36.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282449524.md) - [en](https://longbridge.com/en/news/282449524.md) - [zh-HK](https://longbridge.com/zh-HK/news/282449524.md) --- # The BSV ETF Offers Lower Costs and Larger Scale Than the ISTB ETF ## Key Points - BSV is less expensive to own and manages much more in assets than ISTB - ISTB delivered a higher 1-year return and slightly higher yield compared to BSV - Both funds stick to short-term bonds but differ in portfolio breadth and minor risk metrics - 10 stocks we like better than iShares Trust - iShares Core 1-5 Year Usd Bond ETF › The **Vanguard Short-Term Bond ETF** (NYSEMKT:BSV) charges half the expense ratio of the **iShares Core 1-5 Year USD Bond ETF** (NASDAQ:ISTB) and has much higher assets under management (AUM), while ISTB beats BSV in terms of dividend yield and one-year performance. Both BSV and ISTB aim to provide diversified exposure to short-term bonds, appealing to investors seeking stability and modest income. This comparison looks at their costs, returns, risk levels, portfolio makeup, and trading profiles to help clarify which fund may better fit different fixed-income strategies. ## Snapshot (cost & size) Metric ISTB BSV Issuer IShares Vanguard Expense ratio 0.06% 0.03% 1-yr return (as of 2026-04-10) 5.4% 4.7% Dividend yield 4.2% 3.9% AUM $4.7 billion $70.0 billion _The 1-yr return represents total return over the trailing 12 months._ BSV is more affordable, with an expense ratio of 0.03% versus ISTB’s 0.06%, and ISTB’s yield is modestly higher by 0.3 percentage points, which may appeal to those prioritizing income. ## Performance & risk comparison Metric ISTB BSV Max drawdown (5 y) \-9.37% \-8.53% Growth of $1,000 over 5 years $1,099 $1,088 ## What's inside BSV tracks a broad mix of investment-grade short-term bonds, including U.S. government, high-quality corporate, and select international issues, with 30 holdings and a 19-year track record. Its largest positions are United States Treasury Note/Bond 3.50% 02/28/2031 (2.23%), United States Treasury Note/Bond 3.50% 01/31/2028 (1.16%), and United States Treasury Note/Bond 3.75% 01/31/2031 (0.99%). ISTB, by contrast, casts a much wider net, with over 7,000 holdings. Its top holdings are Treasury Note 10/31/2030 (1.02%), Treasury Note 02/28/2030 (1.00%), and Treasury Note 09/30/2030 (0.98%). Both funds avoid leverage, currency hedging, or other notable quirks. For more guidance on ETF investing, check out the full guide at this link. ## What it means for investors Around 52% of ITIB’s portfolio is invested in U.S. Treasuries. Less than half is supplied by a diverse list of corporate debt issuers. At 0.54% of the portfolio, **JPMorgan Chase** (NYSE:JPM) is its largest source of corporate bonds. The BSV ETF also provides steady income with a combination of short-maturity U.S. Treasuries, debt backed by government agencies, and investment-grade corporate debt. The BSV ETF has 11.95% of its portfolio in BBB-rated securities. The rest have a higher rating or are backed by the U.S. Government. Returns from both funds over the past five years have been disappointing. A $1,000 investment in ISTB five years ago has generated a $99 return. The same investment in the BSV ETF produced a $88 return. Those positive returns are only possible because of accumulated dividend payments. IBIT and BSV investors have seen their principal decline by 5.6% and 4.8%, respectively, over the past five years. ## Should you buy stock in iShares Trust - iShares Core 1-5 Year Usd Bond ETF right now? Before you buy stock in iShares Trust - iShares Core 1-5 Year Usd Bond ETF, consider this: The _Motley Fool Stock Advisor_ analyst team just identified what they believe are the **10 best stocks** for investors to buy now… and iShares Trust - iShares Core 1-5 Year Usd Bond ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when **Netflix** made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, **you’d have $555,526**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,156,403**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 968% — a market-crushing outperformance compared to 191% for the S&P 500. **Don't miss the latest top 10 list, available with _Stock Advisor_, and join an investing community built by individual investors for individual investors.** See the 10 stocks » _\*Stock Advisor returns as of April 12, 2026._ _JPMorgan Chase is an advertising partner of Motley Fool Money. Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase and Vanguard Bond Index Funds - Vanguard Short-Term Bond ETF. The Motley Fool has a disclosure policy._ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ### Related Stocks - [SHV.US](https://longbridge.com/en/quote/SHV.US.md) - [VCSH.US](https://longbridge.com/en/quote/VCSH.US.md) - [IGSB.US](https://longbridge.com/en/quote/IGSB.US.md) - [BSV.US](https://longbridge.com/en/quote/BSV.US.md) - [ISTB.US](https://longbridge.com/en/quote/ISTB.US.md) ## Related News & Research - [TREASURIES-Yields on longer-dated bonds hit year-plus highs overnight](https://longbridge.com/en/news/286778191.md) - [Universal Digital Inc. 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