BIV vs SPY
BIV vs SPY
Vanguard Intermediate-Term Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
BIV has a lower expense ratio. SPY delivered stronger 1-year returns. BIV offers more diversification with 2101 holdings.
Side-by-Side Comparison
| Metric | BIV | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $29.3B | $789.1B | |
| Dividend Yield | 4.18% | 1.01% | |
| Holdings | 2,321 | 505 | |
| YTD Return | -0.69% | +13.79% | |
| 1Y Return | +1.65% | +23.66% | |
| 3Y Return (annualized) | +4.23% | +21.40% | |
| 5Y Return (annualized) | -0.17% | +13.37% | |
| Volatility (annualized) | 5.7% | 15.3% | |
| Max Drawdown | -20.3% | -56.5% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Jan 22, 1993 |
BIV vs SPY Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BIV returned +1.65% while SPY returned +23.66%. Year to date, BIV is down 0.69% versus a gain of 13.79% for SPY.
Over three years, BIV compounded at +4.23% per year against +21.40% for SPY; over five years the annualized figures are -0.17% and +13.37% respectively. Across the full 19-year window we track, SPY has the edge at +8.85% annualized vs +0.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.5% for SPY. 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while SPY charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, BIV currently yields 4.18% against 1.01% for SPY.
Holdings Overlap
BIV and SPY share 4 holdings out of 2600 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
Frequently Asked Questions
Which is cheaper, BIV or SPY?
BIV has an expense ratio of 0.03% while SPY charges 0.09%. BIV is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, BIV or SPY?
Over the past year BIV returned +1.65% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +0.99% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BIV or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs SPY -56.5%.
Should I hold both BIV and SPY?
BIV and SPY have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and SPY?
BIV and SPY share 4 common holdings with a 0.1% weight overlap. Combined, they hold 2600 unique securities.
Which pays a higher dividend, BIV or SPY?
BIV yields 4.18% while SPY yields 1.01%, so BIV currently pays the higher dividend yield.
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