BSV vs PYGSX Fund Comparison

A comparison between BSV and PYGSX based on their expense ratio, growth, holdings and how well they match their benchmark performance.

Group Created with Sketch.

Minafi's Take on BSV vs PYGSX

Here's an in depth look at the differences between Vanguard Short-Term Bond Index Fund ETF Shares ($BSV) and Payden Global Low Duration Fund ($PYGSX).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

85% FI Score
  • bsv
  • ETF
  • Bond
  • High Yield Bond

Vanguard Short-Term Bond Index Fund ETF Shares

Expenses: 0.07% (Better than 1% of similar funds)

This is an OK choice for a High Yield Bond Bond fund. See why »

42% FI Score
  • pygsx
  • Mutual Fund
  • Bond
  • High Yield Bond

Payden Global Low Duration Fund

Expenses: 0.53% (Better than 1% of similar funds)

This is a bad choice for a High Yield Bond Bond fund. See why »

$BSV is classified as an ETF while $PYGSX is classified as a Mutual Fund. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Both of these funds are Bond High Yield Bond funds – which means they're likely both investing in about the same investments behind the scenes.

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

BSV PYGSX
Market Score 10.0 /10 2.8 /10
Category Score 0.0 /10 0.0 /10
Total 10.0 2.8

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $BSV

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, BSV has an expense ratio of 0.07% while PYGSX has an expense ratio of 0.53%. In this case, both of these funds have a similar fee.

Winner: $BSV (barely)

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, BSV is a large fund with 52.7 Billion in assets under management. PYGSX, on the other hand, is a small fund with 104 Million in assets under management.

Winner: $BSV, Vanguard Short-Term Bond Index Fund ETF Shares

Which Should You Choose? BSV or PYGSX?

Since both of these funds are Bond High Yield Bond funds, you'll most likely only need to invest in one of these funds – not both. Running both of these funds through Minafi's FI Score algorithm, gives BSV a score of 85 and PYGSX a score of 42.

Neither of these funds has an FI Score above 90 – which is a red flag. I'd look into more funds to find one with a higher FI Score.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$BSV

Vanguard Short-Term Bond Index Fund ETF Shares

85

Read More
Ratings
Rating Type Rating
Expense Ratio Score 10 /10
Expense Rating 9 /10
Market Score 10 /10
Category Score 0 /10
Overview
Overview Details
Fund Type ETF
Inception Date Apr-3-2007
Exchange NYSE ARCA
Expense Ratio 0.070%
Net Assets 52.7 Billion
Yield 2.17%
Holdings
Description Info
Market Bond
Category High Yield Bond
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 0.00%
  • Industrials 0.00%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%

$PYGSX

Payden Global Low Duration Fund

42

Read More
Ratings
Rating Type Rating
Expense Ratio Score 8 /10
Expense Rating 5 /10
Market Score 3 /10
Category Score 0 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Sep-18-1996
Exchange NMFQS
Expense Ratio 0.530%
Net Assets 104 Million
Yield 2.52%
Holdings
Description Info
Market Bond
Category High Yield Bond
Sectors
  • Agency Mortgage-Backed 4.72%
  • Agency/Quasi-Agency 2.51%
  • Asset-Backed 23.25%
  • Bank Loan 0.00%
  • Cash & Equivalents -21.15%
  • Commercial MBS 4.12%
  • Convertible 4.08%
  • Corporate 42.20%
  • Corporate Bond 37.52%
  • Covered Bond 0.00%
  • Government 19.74%
  • Municipal 0.00%
  • Non-Agency Residential MBS 1.45%
  • Other 0.00%
  • Other Government Related 23.48%
  • Preferred 0.60%
  • Securitized 33.54%
  • Supranational 0.00%

Adam says: Learn how to confidently invest for retirement!

Join the Minafi Investor Bootcamp to see how.

This 10-course bootcamp starts at only $10 for everything!

Minafi - The intersection of FI, minimalism & mindfulness.

Don't miss out on new posts, courses, interactive articles and more!

Join & Get Your First Course Free

© 2024   Adam Fortuna

Site Map
Triangle Graduation Cap Angle Down Book regular Phone laptop regular fire regular fire regular search regular Acorn duotone Seedling duotone thumbs up duo thumbs down duo