BIV vs VDIGX
Vanguard Intermediate-Term Bond ETF vs Vanguard Dividend Growth Fund Investor Class
Quick Verdict
BIV has a lower expense ratio. BIV delivered stronger 1-year returns. BIV offers more diversification with 2101 holdings.
Side-by-Side Comparison
| Metric | BIV | VDIGX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.22% | |
| AUM | $29.3B | $36.4B | |
| Dividend Yield | 4.18% | 1.87% | |
| Holdings | 2,321 | 55 | |
| YTD Return | -1.00% | -0.12% | |
| 1Y Return | +1.52% | -8.96% | |
| 3Y Return (annualized) | +4.54% | -3.11% | |
| 5Y Return (annualized) | -0.22% | -2.91% | |
| Volatility (annualized) | 5.7% | 16.1% | |
| Max Drawdown | -20.3% | -32.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | May 15, 1992 |
BIV vs VDIGX Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US). Over the past year BIV returned +1.52% while VDIGX returned -8.96%. Year to date, BIV is down 1.00% versus a loss of 0.12% for VDIGX.
Over three years, BIV compounded at +4.54% per year against -3.11% for VDIGX; over five years the annualized figures are -0.22% and -2.91% respectively. Across the full 5-year window we track, BIV has the edge at +0.97% annualized vs -2.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDIGX has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -32.6% for VDIGX. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while VDIGX charges 0.22%. On a $10,000 position that is $3 vs $22 annually, a gap of $19 per year that compounds over a long holding period. On income, BIV currently yields 4.18% against 1.87% for VDIGX.
Holdings Overlap
BIV and VDIGX share 0 holdings out of 2148 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 VDIGX?
BIV has an expense ratio of 0.03% while VDIGX charges 0.22%. BIV is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, BIV or VDIGX?
Over the past year BIV returned +1.52% vs -8.96% for VDIGX, so BIV leads on 1-year performance. Over the longest common window we track (5 years), BIV annualized +0.97% vs -2.91% for VDIGX. Past performance does not guarantee future results.
Which is riskier, BIV or VDIGX?
VDIGX has been the more volatile fund at 16.1% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VDIGX -32.6%.
Should I hold both BIV and VDIGX?
BIV and VDIGX have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and VDIGX?
BIV and VDIGX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2148 unique securities.
Which pays a higher dividend, BIV or VDIGX?
BIV yields 4.18% while VDIGX yields 1.87%, so BIV currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.