BIV vs VGK
Vanguard Intermediate-Term Bond ETF vs Vanguard FTSE Europe ETF
Quick Verdict
BIV has a lower expense ratio. VGK delivered stronger 1-year returns. BIV offers more diversification with 2101 holdings.
Side-by-Side Comparison
| Metric | BIV | VGK | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $29.3B | $30.0B | |
| Dividend Yield | 4.18% | 2.94% | |
| Holdings | 2,321 | 1,251 | |
| YTD Return | -1.00% | +11.16% | |
| 1Y Return | +1.52% | +23.18% | |
| 3Y Return (annualized) | +4.54% | +18.17% | |
| 5Y Return (annualized) | -0.22% | +9.29% | |
| Volatility (annualized) | 5.7% | 18.5% | |
| Max Drawdown | -20.3% | -67.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Mar 4, 2005 |
BIV vs VGK Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US). Over the past year BIV returned +1.52% while VGK returned +23.18%. Year to date, BIV is down 1.00% versus a gain of 11.16% for VGK.
Over three years, BIV compounded at +4.54% per year against +18.17% for VGK; over five years the annualized figures are -0.22% and +9.29% respectively. Across the full 19-year window we track, VGK has the edge at +3.69% annualized vs +0.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -67.3% for VGK. 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while VGK charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, BIV currently yields 4.18% against 2.94% for VGK.
Holdings Overlap
BIV and VGK share 0 holdings out of 3059 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 VGK?
BIV has an expense ratio of 0.03% while VGK charges 0.06%. BIV is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, BIV or VGK?
Over the past year BIV returned +1.52% vs +23.18% for VGK, so VGK leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +0.97% vs +3.69% for VGK. Past performance does not guarantee future results.
Which is riskier, BIV or VGK?
VGK has been the more volatile fund at 18.5% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VGK -67.3%.
Should I hold both BIV and VGK?
BIV and VGK have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and VGK?
BIV and VGK share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3059 unique securities.
Which pays a higher dividend, BIV or VGK?
BIV yields 4.18% while VGK yields 2.94%, so BIV currently pays the higher dividend yield.
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