BIV vs VCIT
Vanguard Intermediate-Term Bond ETF vs Vanguard Intermediate Term Corporate Bond ETF
Quick Verdict
VCIT delivered stronger 1-year returns. BIV offers more diversification with 2,336 holdings.
Side-by-Side Comparison
| Metric | BIV | VCIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $28.8B | $69.8B | |
| Dividend Yield | 4.28% | 4.87% | |
| Holdings | 2,336 | 2,271 | |
| YTD Return | -0.68% | -0.34% | |
| 1Y Return | +1.02% | +1.89% | |
| 3Y Return (annualized) | +4.39% | +5.93% | |
| 5Y Return (annualized) | -0.25% | +0.74% | |
| Volatility (annualized) | 5.7% | 6.0% | |
| Max Drawdown | -20.3% | -20.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 3, 2007 | Nov 19, 2009 |
BIV vs VCIT Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US). Over the past year BIV returned +1.02% while VCIT returned +1.89%. Year to date, BIV is down 0.68% versus a loss of 0.34% for VCIT.
Over three years, BIV compounded at +4.39% per year against +5.93% for VCIT; over five years the annualized figures are -0.25% and +0.74% respectively. Across the full 17-year window we track, VCIT has the edge at +1.75% annualized vs +0.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCIT has been the more volatile fund, with annualized monthly volatility of 6.0% 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 -20.7% for VCIT. 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 0.91. 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 4.28% against 4.87% for VCIT.
Holdings Overlap
BIV and VCIT share 254 holdings out of 304 unique holdings combined, representing a 5.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BIV | Weight in VCIT | Difference |
|---|---|---|---|
| JPM V4.912 07/25/33 | 0.08% | 0.25% | 0.17% |
| BAC V5.015 07/22/33 | 0.06% | 0.27% | 0.21% |
| WFC V5.605 04/23/36 | 0.09% | 0.18% | 0.09% |
| AER 3.3 01/30/32 | Pro | Pro | Pro |
| JPM V2.963 01/25/33 | Pro | Pro | Pro |
| MS V5.25 04/21/34 MT | Pro | Pro | Pro |
| JPM V5.717 09/14/33 | Pro | Pro | Pro |
| ABBV 5.05 03/15/34 | Pro | Pro | Pro |
| BAC V5.288 04/25/34 | Pro | Pro | Pro |
| WFC V5.211 12/03/35 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, BIV or VCIT?
BIV has an expense ratio of 0.03% while VCIT charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BIV or VCIT?
Over the past year BIV returned +1.02% vs +1.89% for VCIT, so VCIT leads on 1-year performance. Over the longest common window we track (17 years), BIV annualized +0.99% vs +1.75% for VCIT. Past performance does not guarantee future results.
Which is riskier, BIV or VCIT?
VCIT has been the more volatile fund at 6.0% annualized versus 5.7% 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. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BIV and VCIT?
BIV and VCIT share 254 common holdings with a 5.5% weight overlap. Combined, they hold 304 unique securities.
Which pays a higher dividend, BIV or VCIT?
BIV yields 4.28% while VCIT yields 4.87%, so VCIT currently pays the higher dividend yield.
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