Nearly 70% of BSV’s 1,753 holdings are U.S. government bonds with the rest of the portfolio comprised of high-grade corporates and dollar-denominated foreign bonds.
While BSV offers some protection from rising rates, there is a rub. BSV is only up 0.4%, which is better than the 1.5% lost by BND, but the former also only yields 0.75%. That is less than the rates offered on savings accounts from American Express (NYSE: AXP), Discover Financial (NYSE: DFS) and General Electric (NYSE: GE).
Vanguard Short-Term Bond ETF
ETF Trends editorial team contributed to this post.