The Vanguard Short-Term Bond ETF (BSV) and Vanguard Short-Term Treasury ETF (VGSH) both offer low costs and high liquidity. BSV has larger AUM and broader bond exposure, while VGSH focuses solely on U.S. Treasuries. Both aim for steady income with differing approaches. VGSH has higher dividend yield, while BSV has larger AUM.

BSV tracks a broad bond index with 3,115 positions, including U.S. government, corporate, and international investment-grade bonds. Top holdings are U.S. Treasury bonds, reflecting high-quality government debt. VGSH focuses only on U.S. Treasuries with 92 holdings and top positions in government bonds for maximum credit safety.

Investors seeking safe short-term income may choose either Vanguard fund. VGSH has a higher 5-year return, while BSV focuses on corporate debt for potentially higher yields. VGSH offers stable returns during market cycles, while BSV may face steeper drawdowns in economic challenges due to corporate bond exposure.

Read more at Yahoo Finance: BSV Offers Broader Bond Exposure Than VGSH