BIV vs VBR

Quick Verdict

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

Lower Fees: BIVHigher Returns: VBRMore Diversified: BIV

Side-by-Side Comparison

MetricBIVVBRWinner
Expense Ratio0.03%0.05%
AUM$29.3B$36.9B
Dividend Yield4.18%2.23%
Holdings2,321853
YTD Return-1.07%+17.42%
1Y Return+1.44%+28.50%
3Y Return (annualized)+4.45%+15.85%
5Y Return (annualized)-0.21%+9.84%
Volatility (annualized)5.7%19.0%
Max Drawdown-20.3%-64.0%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionApr 3, 2007Jan 26, 2004

BIV vs VBR Performance

Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard Small Cap Value ETF (VBR) is a ETF from Vanguard (US). Over the past year BIV returned +1.44% while VBR returned +28.50%. Year to date, BIV is down 1.07% versus a gain of 17.42% for VBR.

Over three years, BIV compounded at +4.45% per year against +15.85% for VBR; over five years the annualized figures are -0.21% and +9.84% respectively. Across the full 19-year window we track, VBR has the edge at +8.01% annualized vs +0.97%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VBR has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -64.0% for VBR. 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 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BIV charges 0.03% per year while VBR charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, BIV currently yields 4.18% against 2.23% for VBR.

Holdings Overlap

0.0%overlap

BIV and VBR share 0 holdings out of 2910 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 VBR?

BIV has an expense ratio of 0.03% while VBR charges 0.05%. BIV is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, BIV or VBR?

Over the past year BIV returned +1.44% vs +28.50% for VBR, so VBR leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +0.97% vs +8.01% for VBR. Past performance does not guarantee future results.

Which is riskier, BIV or VBR?

VBR has been the more volatile fund at 19.0% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VBR -64.0%.

Should I hold both BIV and VBR?

BIV and VBR have a monthly-return correlation of 0.16, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BIV and VBR?

BIV and VBR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2910 unique securities.

Which pays a higher dividend, BIV or VBR?

BIV yields 4.18% while VBR yields 2.23%, so BIV currently pays the higher dividend yield.

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