BIV vs VIG
Vanguard Intermediate-Term Bond ETF vs Vanguard Dividend Appreciation ETF
Quick Verdict
BIV has a lower expense ratio. VIG delivered stronger 1-year returns. BIV offers more diversification with 2101 holdings.
Side-by-Side Comparison
| Metric | BIV | VIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $29.3B | $110.2B | |
| Dividend Yield | 4.18% | 1.79% | |
| Holdings | 2,321 | 335 | |
| YTD Return | -1.07% | +12.33% | |
| 1Y Return | +1.44% | +20.84% | |
| 3Y Return (annualized) | +4.45% | +16.69% | |
| 5Y Return (annualized) | -0.21% | +10.89% | |
| Volatility (annualized) | 5.7% | 13.3% | |
| Max Drawdown | -20.3% | -48.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Apr 21, 2006 |
BIV vs VIG Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US). Over the past year BIV returned +1.44% while VIG returned +20.84%. Year to date, BIV is down 1.07% versus a gain of 12.33% for VIG.
Over three years, BIV compounded at +4.45% per year against +16.69% for VIG; over five years the annualized figures are -0.21% and +10.89% respectively. Across the full 19-year window we track, VIG has the edge at +8.70% annualized vs +0.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIG has been the more volatile fund, with annualized monthly volatility of 13.3% 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 -48.2% for VIG. 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while VIG 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 1.79% for VIG.
Holdings Overlap
BIV and VIG share 1 holdings out of 2431 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BIV | Weight in VIG | Difference |
|---|---|---|---|
| AON | 0.01% | 0.31% | 0.30% |
Frequently Asked Questions
Which is cheaper, BIV or VIG?
BIV has an expense ratio of 0.03% while VIG 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 VIG?
Over the past year BIV returned +1.44% vs +20.84% for VIG, so VIG leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +0.97% vs +8.70% for VIG. Past performance does not guarantee future results.
Which is riskier, BIV or VIG?
VIG has been the more volatile fund at 13.3% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VIG -48.2%.
Should I hold both BIV and VIG?
BIV and VIG have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and VIG?
BIV and VIG share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2431 unique securities.
Which pays a higher dividend, BIV or VIG?
BIV yields 4.18% while VIG yields 1.79%, so BIV currently pays the higher dividend yield.
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