BIV vs VEA
Vanguard Intermediate-Term Bond ETF vs Vanguard FTSE Developed Markets ETF
Quick Verdict
VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | BIV | VEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $29.3B | $230.9B | |
| Dividend Yield | 4.18% | 2.57% | |
| Holdings | 2,321 | 3,918 | |
| YTD Return | -1.00% | +15.82% | |
| 1Y Return | +1.52% | +29.42% | |
| 3Y Return (annualized) | +4.54% | +20.28% | |
| 5Y Return (annualized) | -0.22% | +10.01% | |
| Volatility (annualized) | 5.7% | 17.8% | |
| Max Drawdown | -20.3% | -62.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Jul 20, 2007 |
BIV vs VEA Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US). Over the past year BIV returned +1.52% while VEA returned +29.42%. Year to date, BIV is down 1.00% versus a gain of 15.82% for VEA.
Over three years, BIV compounded at +4.54% per year against +20.28% for VEA; over five years the annualized figures are -0.22% and +10.01% respectively. Across the full 19-year window we track, VEA has the edge at +3.12% annualized vs +0.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -62.9% for VEA. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while VEA charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BIV currently yields 4.18% against 2.57% for VEA.
Holdings Overlap
BIV and VEA share 0 holdings out of 5109 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 VEA?
BIV has an expense ratio of 0.03% while VEA charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BIV or VEA?
Over the past year BIV returned +1.52% vs +29.42% for VEA, so VEA leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +0.97% vs +3.12% for VEA. Past performance does not guarantee future results.
Which is riskier, BIV or VEA?
VEA has been the more volatile fund at 17.8% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VEA -62.9%.
Should I hold both BIV and VEA?
BIV and VEA have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and VEA?
BIV and VEA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5109 unique securities.
Which pays a higher dividend, BIV or VEA?
BIV yields 4.18% while VEA yields 2.57%, so BIV currently pays the higher dividend yield.
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