SCHO vs. BSV: Czyste bezpieczeństwo skarbu państwowego, czy szersza mieszanka krótkoterminowych obligacji?

Key Points

Both funds offer extremely low fees and near-identical yields, but Schwab Short-Term U.S. Treasury ETF holds a much larger asset base.

BSV delivered a higher one-year return but also experienced a steeper five-year drawdown than SCHO.

Portfolio differences show BSV adds investment-grade corporate bonds, while SCHO sticks almost entirely to U.S. Treasuries.

• 10 stocks we like better than Vanguard Bond Index Funds - Vanguard Short-Term Bond ETF ›

The Schwab Short-Term U.S. Treasury ETF (NYSEMKT:SCHO) and the Vanguard Short-Term Bond ETF (NYSEMKT:BSV) stand out for their rock-bottom expenses, similar yields, and focus on short-term bonds, but differ in portfolio construction, risk profile, and scale.

Both SCHO and BSV aim to provide conservative exposure to the short end of the bond market, appealing to investors seeking modest returns with limited volatility. This comparison examines how their costs, recent performance, risk, liquidity, and portfolio composition stack up for risk-averse investors choosing between two of the most popular short-term bond exchange-traded funds.

Snapshot (cost & size)

| Metric | SCHO | BSV | |---|---|---| | Issuer | Schwab | Vanguard | | Expense ratio | 0.03% | 0.03% | | 1-yr return (as of 2026-04-15) | 3.7% | 4.4% | | Dividend yield | 4.0% | 3.9% | | Beta | 0.24 | 0.39 | | AUM | $12.5 billion | $69.8 billion |

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.

SCHO and BSV are equally affordable, with each charging a 0.03% expense ratio, and both offer nearly identical yields, making neither fund stand out on cost or payout for income-focused buyers.

Performance & risk comparison

| Metric | SCHO | BSV | |---|---|---| | Max drawdown (5 y) | -5.76% | -8.53% | | Growth of $1,000 over 5 years | $1,093 | $1,089 |

What's inside

Vanguard Short-Term Bond ETF tracks a broad short-term bond index, investing in U.S. government, investment-grade corporate, and some dollar-denominated international bonds. Its top allocations are to recent U.S. Treasury issues and cash. This fund’s significant allocation to cash and government securities means credit risk is low, but its inclusion of corporates introduces a bit more yield and volatility compared to pure Treasuries.

Schwab Short-Term U.S. Treasury ETF stays almost entirely in U.S. Treasury securities, with 99% in cash and Treasuries, and only minor allocations elsewhere. This ultra-conservative tilt may appeal to those prioritizing safety over incremental yield, and SCHO holds 97 positions for additional diversification within Treasuries.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

Short-term bond funds like these occupy a specific role in a portfolio. They're not trying to generate big returns, but they aim to preserve capital, dampen volatility, and produce modest income while interest rate risk stays low. SCHO and BSV both do this at identical, negligible cost, but they take meaningfully different paths to get there.

SCHO holds only U.S. Treasury securities maturing in one to three years, which is the closest thing to risk-free investing available in fixed income. There is no credit risk here, just pure government-backed income. That simplicity is the point. BSV holds a broader mix: roughly 70% government bonds alongside about 25% investment-grade corporate debt, with maturities extending out to five years. That extra corporate exposure adds a small layer of credit risk. It’s the kind that stays quiet in good economic times but can surface when recession fears rise and corporate spreads widen.

Both funds charge the same razor-thin fee, so the choice comes down to one question: Do you want pure Treasury safety, or a short-term bond portfolio that reflects the broader investment-grade market? SCHO is the more defensive choice, while BSV is the more complete short-term bond portfolio.

Should you buy stock in Vanguard Bond Index Funds - Vanguard Short-Term Bond ETF right now?

Before you buy stock in Vanguard Bond Index Funds - Vanguard Short-Term Bond ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Bond Index Funds - Vanguard Short-Term Bond ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $580,872! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,219,180!

Now, it’s worth noting Stock Advisor’s total average return is 1,016% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

**Stock Advisor returns as of April 17, 2026. *

Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Bond Index Funds - Vanguard Short-Term Bond ETF. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.