BSV offers a 4.00% distribution yield and lower fees, while VTES targets tax-exempt municipal bonds with a 2.70% yield.
Vanguard’s Short-Term Bond ETF (BSV) and Short-Term Tax-Exempt Bond ETF (VTES) cater to different investor needs. BSV provides a 4.00% distribution yield and a 0.03% expense ratio, focusing on government and corporate debt with maturities of one to five years. It holds 30 securities, including U.S. Treasury notes, and delivered a $3.11 per-share dividend over the past year.
VTES, by contrast, targets tax-sensitive investors with a 2.70% yield and a municipal bond portfolio. It employs an ESG screen and holds 2,667 bonds with maturities up to seven years. While BSV offers higher payouts, VTES prioritizes tax efficiency, appealing to those in higher tax brackets.
Both funds aim to reduce interest-rate risk but differ in asset composition and tax treatment.