SHY vs BSV: Head-to-Head Comparison
Last updated: March 2026 • Bond
Quick Verdict
BSV edges out SHY with a stronger Beginner Suitability Score (10 vs 9). It offers lower fees for new investors.
Side-by-Side Comparison
Key Differences Between SHY and BSV
SHY (iShares 1-3 Year Treasury Bond ETF) is a short-term treasury fund managed by BlackRock. SHY tracks the ICE U.S. Treasury 1-3 Year Bond Index, focusing exclusively on short-maturity U.S. Treasury bonds that mature within one to three years. Short-duration Treasuries have minimal interest rate risk, making SHY one of the most stable bond ETFs available. It serves as an excellent cash alternative or parking place for money you might need in the near term.
BSV (Vanguard Short-Term Bond ETF) is a short-term bond fund managed by Vanguard. BSV invests in U.S. investment-grade bonds with maturities between one and five years, offering a stable option for conservative investors. Its short duration means less sensitivity to interest rate changes compared to longer-term bond funds. This makes BSV a popular choice for parking cash or reducing overall portfolio volatility.
The most notable differences are in fees (0.15% vs 0.04%), number of holdings (85 vs 2,800), and 5-year returns (1.80% vs 1.80%).
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Holdings Overlap Analysis
0%
Holdings Overlap
SHY and BSV share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
SHY
Fee cost: $1,278
BSV
Fee cost: $344
Over 20 years, the fee difference amounts to $934 on a $10,000 investment. BSV saves you more in fees over time.
Which One Should a Beginner Choose?
Choose SHY if: You want investors parking cash for near-term needs with minimal risk of loss, conservative portfolio anchoring with the most stable bond etf available, emergency fund or short-term savings alternative to bank savings accounts. It's managed by BlackRock with an expense ratio of 0.15%.
Choose BSV if: You want conservative investors seeking stability and capital preservation, investors looking for a low-risk place to park cash reserves, retirees who need predictable income with minimal volatility. It's managed by Vanguard with an expense ratio of 0.04%.
Can You Own Both SHY and BSV?
Absolutely! With only 0% overlap, SHY and BSV complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
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Frequently Asked Questions
Should I buy SHY or BSV?▾
BSV edges out SHY with a stronger Beginner Suitability Score (10 vs 9). It offers lower fees for new investors. However, both are solid options. SHY is best for investors who want investors parking cash for near-term needs with minimal risk of loss, while BSV is better suited for conservative investors seeking stability and capital preservation.
What is the difference between SHY and BSV?▾
SHY (iShares 1-3 Year Treasury Bond ETF) tracks short-term treasury investments with 85 holdings and a 0.15% expense ratio. BSV (Vanguard Short-Term Bond ETF) focuses on short-term bond with 2,800 holdings at 0.04%. Their top holdings overlap by 0%.
Can I own both SHY and BSV?▾
Yes! With only 0% holdings overlap, SHY and BSV complement each other well. Owning both gives you broader diversification.