BIV vs VCIT

BIV vs VCIT

Which is better, BIV or VCIT?

VCIT has been ahead.

VCIT led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91.

Lower Fees: TiedHigher Returns: VCIT

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricBIVVCIT
Expense Ratio0.03%Tie0.03%Tie
AUM$28.8B$69.8B
Dividend Yield4.32%4.89%
Holdings2,3362,271
YTD Return-2.22%-1.72%Best
1Y Return-1.41%-0.83%Best
3Y Return (annualized)+4.30%+5.86%Best
5Y Return (annualized)-0.54%+0.46%Best
Volatility (annualized)5.3%Best5.9%
Max Drawdown-20.3%Best-20.7%
$10,000 over 5 years$9,733$10,232Best
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeFixed Income
Style-Long Term Mid Quality
InceptionApr 3, 2007Nov 19, 2009

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 18, 2026 (16.8 years).

BIV vs VCIT growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16.8 years both funds cover.

Compare BIV against instead:BIV vs SPYBIV vs QQQBIV vs VOOBIV vs VTIVCIT against:VCIT vs VXUS

BIV vs VCIT Performance

Vanguard Intermediate-Term Bond ETF (BIV) is an ETF from Vanguard (US) and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is an ETF from Vanguard (US). Over the past year BIV returned -1.41% while VCIT returned -0.83%. Year to date, BIV is down 2.22% versus a loss of 1.72% for VCIT.

Over three years, BIV compounded at +4.30% per year against +5.86% for VCIT; over five years the annualized figures are -0.54% and +0.46% respectively. Across the full 17-year window we track, VCIT has the edge at +1.66% annualized vs +0.60%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VCIT has been the more volatile fund, with annualized monthly volatility of 5.9% compared with 5.3% 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 -20.7% for VCIT. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

BIV charges 0.03% per year while VCIT charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BIV currently yields 4.32% against 4.89% for VCIT.

Holdings Overlap

We hold position weights for 798 holdings in BIV and 1,364 in VCIT, totalling 60.9% and 61.8% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 532 positions appear in both.

532 positions in common, counted across the 798 positions we hold weights for in BIV and 1,364 in VCIT, against full books of 2,336 and 2,271.

Top Shared Holdings

StockWeight in BIVWeight in VCITDifference
CURVVanguard Market Liquidity Fund0.32%0.22%0.10%
BA 6.528 05/01/34Boeing Co/The Corp. Note0.08%0.28%0.20%
PFE 4.75 05/19/33Pfizer Investment Enterprises Pte 4.75% May 19, 20330.08%0.26%0.18%
JPM V4.912 07/25/33Jpmorgan Chase & Co 4.91% 25Jul20330.08%0.25%0.17%
BAC V5.015 07/22/33 0.06%0.27%0.21%
JPM V5.35 06/01/34Jpmorgan Chase 5.35 06/01/20340.08%0.25%0.17%
MS V6.342 10/18/33Morgan Stanley Sr Unsec 6.342% 10-18-33/320.15%0.18%0.03%
AMGN 5.25 03/02/33Amgen Inc 5.25 03/02/20330.07%0.24%0.17%
JPM V5.576 07/23/36Jpmorgan Chase & Co 5.58 07/23/20360.07%0.21%0.14%
BAC V4.571 04/27/33Bank of America Corp Mtn 4.57% Apr 27, 20330.06%0.22%0.16%

You are not choosing between two funds in isolation.

Whichever of BIV and VCIT you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

BIVVCIT

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Frequently Asked Questions

Which is cheaper, BIV or VCIT?

BIV has an expense ratio of 0.03% while VCIT charges 0.03%. At the precision these are quoted to, they cost the same.

Which performed better, BIV or VCIT?

Over the past year BIV returned -1.41% vs -0.83% for VCIT, so VCIT leads on 1-year performance. Over the longest common window we track (17 years), BIV annualized +0.60% vs +1.66% for VCIT. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BIV or VCIT?

VCIT has been the more volatile fund at 5.9% annualized versus 5.3% for BIV. Worst drawdown: BIV -20.3% vs VCIT -20.7%.

Should I hold both BIV and VCIT?

BIV and VCIT have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

Which pays a higher dividend, BIV or VCIT?

BIV yields 4.32% while VCIT yields 4.89%, so VCIT currently pays the higher dividend yield.

Is VCIT better than BIV?

VCIT led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. Which one suits a particular account depends on what it is for. This is information, not a recommendation.