BIV vs RSP

Quick Verdict

BIV has a lower expense ratio. RSP delivered stronger 1-year returns. BIV offers more diversification with 2101 holdings.

Lower Fees: BIVHigher Returns: RSPMore Diversified: BIV

Side-by-Side Comparison

MetricBIVRSPWinner
Expense Ratio0.03%0.20%
AUM$29.3B$97.4B
Dividend Yield4.18%1.51%
Holdings2,321510
YTD Return-0.60%+16.43%
1Y Return+1.50%+20.73%
3Y Return (annualized)+4.67%+15.53%
5Y Return (annualized)-0.21%+9.20%
Volatility (annualized)5.7%16.5%
Max Drawdown-20.3%-60.9%
Fund FamilyVanguard (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionApr 3, 2007Apr 24, 2003

BIV vs RSP Performance

Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US). Over the past year BIV returned +1.50% while RSP returned +20.73%. Year to date, BIV is down 0.60% versus a gain of 16.43% for RSP.

Over three years, BIV compounded at +4.67% per year against +15.53% for RSP; over five years the annualized figures are -0.21% and +9.20% respectively. Across the full 19-year window we track, RSP has the edge at +10.15% annualized vs +1.00%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RSP has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 5.7% for BIV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -20.3% for BIV and -60.9% for RSP. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BIV charges 0.03% per year while RSP charges 0.20%. On a $10,000 position that is $3 vs $20 annually, a gap of $17 per year that compounds over a long holding period. On income, BIV currently yields 4.18% against 1.51% for RSP.

Holdings Overlap

0.0%overlap

BIV and RSP share 3 holdings out of 2531 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BIVWeight in RSPDifference
GE0.01%0.23%0.22%
CNP0.01%0.20%0.19%
AON0.01%0.19%0.18%

Frequently Asked Questions

Which is cheaper, BIV or RSP?

BIV has an expense ratio of 0.03% while RSP charges 0.20%. BIV is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, BIV or RSP?

Over the past year BIV returned +1.50% vs +20.73% for RSP, so RSP leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +1.00% vs +10.15% for RSP. Past performance does not guarantee future results.

Which is riskier, BIV or RSP?

RSP has been the more volatile fund at 16.5% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs RSP -60.9%.

Should I hold both BIV and RSP?

BIV and RSP have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BIV and RSP?

BIV and RSP share 3 common holdings with a 0.0% weight overlap. Combined, they hold 2531 unique securities.

Which pays a higher dividend, BIV or RSP?

BIV yields 4.18% while RSP yields 1.51%, so BIV currently pays the higher dividend yield.

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