BIV vs VB
Vanguard Intermediate-Term Bond ETF vs Vanguard Morningstar Small-Cap ETF
Quick Verdict
VB delivered stronger 1-year returns. BIV offers more diversification with 2,336 holdings.
Side-by-Side Comparison
| Metric | BIV | VB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $28.8B | $79.7B | |
| Dividend Yield | 4.28% | 1.22% | |
| Holdings | 2,336 | 1,311 | |
| YTD Return | -0.68% | +15.77% | |
| 1Y Return | +1.02% | +20.23% | |
| 3Y Return (annualized) | +4.39% | +16.22% | |
| 5Y Return (annualized) | -0.25% | +7.40% | |
| Volatility (annualized) | 5.7% | 18.9% | |
| Max Drawdown | -20.3% | -61.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Jan 26, 2004 |
BIV vs VB Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard Morningstar Small-Cap ETF (VB) is a ETF from Vanguard (US). Over the past year BIV returned +1.02% while VB returned +20.23%. Year to date, BIV is down 0.68% versus a gain of 15.77% for VB.
Over three years, BIV compounded at +4.39% per year against +16.22% for VB; over five years the annualized figures are -0.25% and +7.40% respectively. Across the full 19-year window we track, VB has the edge at +8.75% annualized vs +0.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 18.9% 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 -61.0% for VB. 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while VB charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BIV currently yields 4.28% against 1.22% for VB.
Holdings Overlap
BIV and VB share 0 holdings out of 1583 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BIV or VB?
BIV has an expense ratio of 0.03% while VB charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BIV or VB?
Over the past year BIV returned +1.02% vs +20.23% for VB, so VB leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +0.99% vs +8.75% for VB. Past performance does not guarantee future results.
Which is riskier, BIV or VB?
VB has been the more volatile fund at 18.9% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VB -61.0%.
Should I hold both BIV and VB?
BIV and VB have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and VB?
BIV and VB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1583 unique securities.
Which pays a higher dividend, BIV or VB?
BIV yields 4.28% while VB yields 1.22%, so BIV currently pays the higher dividend yield.
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