BIV vs VEU
Vanguard Intermediate-Term Bond ETF vs Vanguard FTSE All World Ex US ETF
Quick Verdict
BIV has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 2818 holdings.
Side-by-Side Comparison
| Metric | BIV | VEU | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $29.3B | $67.3B | |
| Dividend Yield | 4.18% | 2.54% | |
| Holdings | 2,321 | 3,921 | |
| YTD Return | -0.60% | +15.47% | |
| 1Y Return | +1.50% | +26.85% | |
| 3Y Return (annualized) | +4.67% | +20.12% | |
| 5Y Return (annualized) | -0.21% | +9.50% | |
| Volatility (annualized) | 5.7% | 17.7% | |
| Max Drawdown | -20.3% | -62.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Mar 2, 2007 |
BIV vs VEU Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US). Over the past year BIV returned +1.50% while VEU returned +26.85%. Year to date, BIV is down 0.60% versus a gain of 15.47% for VEU.
Over three years, BIV compounded at +4.67% per year against +20.12% for VEU; over five years the annualized figures are -0.21% and +9.50% respectively. Across the full 19-year window we track, VEU has the edge at +3.59% annualized vs +1.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -62.8% for VEU. 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while VEU charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, BIV currently yields 4.18% against 2.54% for VEU.
Holdings Overlap
BIV and VEU share 0 holdings out of 4919 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 VEU?
BIV has an expense ratio of 0.03% while VEU charges 0.04%. BIV is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, BIV or VEU?
Over the past year BIV returned +1.50% vs +26.85% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +1.00% vs +3.59% for VEU. Past performance does not guarantee future results.
Which is riskier, BIV or VEU?
VEU has been the more volatile fund at 17.7% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VEU -62.8%.
Should I hold both BIV and VEU?
BIV and VEU have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and VEU?
BIV and VEU share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4919 unique securities.
Which pays a higher dividend, BIV or VEU?
BIV yields 4.18% while VEU yields 2.54%, so BIV currently pays the higher dividend yield.
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