What are the expense ratios for BSV and SCHO?

Both funds have an identical expense ratio of 0.03%. This means the annual management fees are exactly the same. If these ratios changed, a 1% fee difference could cost a 10,000 investment about 100 each year before other factors are considered. Since both are 0.03, there is no direct fee difference to evaluate.

What does it mean if both ETFs have the same fee?

Identical fees mean costs are not a distinguishing factor. The main difference lies in what the funds invest in: BSV holds short-term bonds including some non-government sectors, while SCHO holds only US Treasury securities. Therefore, any differences in outcomes must stem from these underlying assets, not fund fees.

How do the investment strategies differ?

SCHO invests exclusively in short-term US Treasury bonds, which are backed by the government and generally considered very low risk. BSV, a short-term bond fund, includes Treasuries but also adds some investment-grade corporate bonds. This gives BSV a slight credit exposure, aiming for a potentially higher return for the added risk.

Which fund has a larger asset base?

Based on the data, Vanguard's BSV has 46.4 billion in assets, while Schwab's SCHO has 15.3 billion. A larger fund like BSV often has higher trading volume, which can make it easier to buy or sell shares without causing big price movements. Smaller funds can sometimes have wider bid-ask spreads.

Do BSV and SCHO hold the same bonds?

There is no overlap in their top 10 holdings as listed in the available data. This is expected, as SCHO is limited to US Treasuries. BSV's top holdings would include non-Treasury corporate bonds, which would not appear in SCHO's portfolio. The lack of shared top-10 holdings indicates their portfolios are constructed differently.

How do the dividend yields compare?

The current dividend yield for BSV is 4.08%. The yield for SCHO is 3.83%. This difference reflects the composition of each fund. BSV's inclusion of some corporate bonds typically offers a slightly higher yield than a pure Treasury portfolio like SCHO's, compensating investors for the extra credit risk.

Why might short-term bond ETFs see different performance?

Interest rate changes directly affect bond prices. When rates rise, bond prices typically fall. Because SCHO only holds Treasury bonds, its performance is tied to government debt markets and central bank policy. BSV can be influenced by both government and corporate credit markets, meaning its response to interest rate changes may differ slightly.

How do distributions work for these ETFs?

Both BSV and SCHO pay distributions to shareholders, typically monthly, which consist of the interest income earned by the bonds in their portfolios. The yield figures shown represent the annual income. The amount received can vary based on the total interest collected and the fund's specific distribution policy, but both funds follow a similar distribution model.

What is the difference in fund inception dates?

BSV was launched on 3 April 2007, while SCHO was launched on 5 August 2010. This gives BSV a longer operating history. When comparing funds, a longer track record can provide more historical data on how each fund has responded to past interest rate cycles and various market conditions over time.

How do these funds help investors achieve their goals?

Investors often use short-term bond ETFs for capital preservation and liquidity. SCHO is associated with investors prioritising the safety of government backing. BSV is typically used by those seeking a bit of diversification into corporate credit while maintaining a focus on short maturities. Neither is recommended; their utility depends on an individual's specific financial goal.

Can I see what specific bonds each ETF holds?

The provided data does not include the specific top holdings or the sector weights for either BSV or SCHO. This means a detailed analysis of their exact bond portfolios cannot be completed from this information alone. Investors usually need to consult the fund issuer's website for the most up-to-date and complete portfolio breakdown.

What does 'Short-Term Bond' versus 'Short Government' mean?

These are official fund categories. 'Short-Term Bond' refers to funds holding bonds with shorter maturities, which can include corporate and government issuers. 'Short Government' specifies that the bonds held are only those issued by the US government. This categorisation clarifies the scope of each fund's investment mandate.

BSV vs SCHO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Vanguard Short-Term Bond ETF (BSV) and Schwab Short-Term U.S. Treasury ETF (SCHO). Both share a 0.03% expense ratio, but differ in net assets and yields. This page examines fees, dividends and how each fund tracks its market. Note that index tracking details are not available for either fund. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

BSV

Metric

SCHO

0.03%

Expense Ratio

0.03%

4.08%

Dividend Yield

3.83%

$46.36B

Net Assets

$15.28B

3,173

Holdings

Apr 3, 2007

Inception Date

Aug 5, 2010

–

Index Tracked

–

Short-Term Bond

Fund Category

Short Government

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

BSV vs VCSH

Compare BSV and VCSH on fees, assets, and yields. Both have 0.03% expense ratios. Note that top holdings and index tracking data are not available.

BSV vs VUSB

Compare BSV and VUSB ETFs on fees, dividends, and tracking. BSV has a 0.03% expense ratio; VUSB yields 4.29%. See short-term bond differences.

BSV vs VGSH

Compare BSV and VGSH. Review expense ratios of 0.03%, yields of 4.08% and 3.79%, assets, and tracking details for these Vanguard short-term bond ETFs.

Investment Analysis

BSV

Pros

Extensive assets of £33.9 billion support strong trading liquidity and tight bid-ask spreads.
Diversifies across sectors via non-government bonds, reducing concentration risk compared to Treasuries only.
Established track record since 2007 provides greater reliability and confidence in operational performance.

Considerations

Yield of 3.80% trails peer Treasury funds due to higher risk premium pricing.
Credit exposure introduces default risk that could elevate volatility during periods of economic stress.
Specific holdings and sector weights are not available, limiting transparency for detailed portfolio analysis.

SCHO

Pros

Focuses exclusively on US Treasury securities, eliminating any credit default risk concerns for investors.
Provides higher yield than equivalent fund BSV while maintaining low volatility characteristics effectively.
Government bond backing enhances safety during market stress, making it suitable for defensive allocation.

Considerations

Smaller asset base of £12.5 billion may result in reduced trading liquidity compared to larger funds.
Later inception date of 2010 offers less historical performance data and shorter operational track record.
Specific holdings and sector weights are not available, restricting detailed transparency in portfolio composition.

About BSV and SCHO

BSV (BSV)

This exchange-traded fund (ETF) aims to provide investors with a reliable source of current income by investing in high-quality, short-term debt securities. It focuses on investment-grade bonds, which typically offer lower risk compared to long-term or high-yield alternatives, though no investment is entirely risk-free. With a remarkably low expense ratio of 0.03%, it is designed to be a cost-effective tool for stabilising portfolio volatility while generating income. The fund holds a vast number of bonds, spread across various issuers, helping to diversify credit exposure. While it may not deliver the same long-term capital growth as equities, its primary role is often to preserve capital and mitigate interest rate sensitivity. Returns are not guaranteed, and the value of shares can go down as well as up, but its broad asset base and focus on credit quality make it a noteworthy component for income-focused strategies.

SCHO (SCHO)

The Schwab Short-Term U.S. Treasury ETF (SCHO) provides exposure to U.S. government debt with maturities of between one and three years. Designed as a lower-risk bond holding, it aims to generate income while managing sensitivity to interest rate changes more effectively than long-term treasuries. With a low expense ratio of 0.03%, this fund is a cost-efficient option for investors seeking stability within their portfolios. While it holds a dividend yield of approximately 3.83%, returns are subject to market conditions and do not come with guaranteed outcomes. As with any investment, the value of the fund can fall as well as rise, and investors should consider their own risk tolerance and financial goals before allocating funds.

Buy BSV or SCHO in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

BSV vs SCHO

Fund Snapshot