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Frequent Contributor

SWSBX vs VBIRX / BSV

I read somewhere that someone was unhappy with SWSBX because it suffered some recent losses. (Seems to me this is a fairly minor complaint about an extremely conservative fund, although possibly if you have $1 billion invested you might have lost enough to cost you a lunch at McDonald's.) This was my cash sub at Schwab, and when I transferred my Schwab assets to TDA I changed this to VBIRX (or actually BSV, to be more accurate).

For those who own SWSBX, here is a chart of SWSBX, VBIRX (and BSV). I think VBIRX consistently outperforms SWSBX, and has a slightly smoother ride. Look at all time periods from 1 month to 10 years.

It cannot be an expense issue, because all the ERs are similar and cheap:

  • SWSBX  0.06%
  • VBIRX    0.07%
  • BSV       0.05%

Hence, if this is your cup of tea, I would own either VBIRX (at VG) or BSV (anywhere else).

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Contributor ○○○

Re: SWSBX vs VBIRX / BSV

I have owned SWSBX since the black swan. I like there are no short term redemption fees. While it is not a trading fund I want to be able to move in and out as needed. Some is planned to up my equities. After the black swan that was important, Big deal...it moves a penny up or down once in a while.

BTW SWSBX has only been around for 3 years.

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Frequent Contributor

Re: SWSBX vs VBIRX / BSV

As mentioned elsewhere, these short-term bond funds are not for performance but for holding trading money temporarily.

Schwab funds at Schwab NTF don't have strict limits on frequent trading and Schwab only monitors them for gross abuses. So, SWSBX is attractive in that respect. Non-Schwab funds at Schwab NTF have strict 90-day wait to avoid short-term trading fee.

Most short-term funds at Vanguard don't have frequent trading restrictions - imagine that, at Vanguard, where one has to even breathe carefully (-:) So, funds like VBIRX/BSV, VFSTX/VFSUX, VSCSX/VCSH, VMLTX/VMLUX are good for this purpose.

YBB
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