BIV vs VIITX
Vanguard Intermediate-Term Bond ETF vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Quick Verdict
VIITX has a lower expense ratio. BIV delivered stronger 1-year returns. VIITX offers more diversification with 2,599 holdings.
Side-by-Side Comparison
| Metric | BIV | VIITX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.02% | |
| AUM | $28.8B | - | |
| Dividend Yield | 4.28% | 4.59% | |
| Holdings | 2,336 | 2,599 | |
| YTD Return | -1.01% | -2.63% | |
| 1Y Return | +0.99% | -2.14% | |
| 3Y Return (annualized) | +4.57% | +0.42% | |
| 5Y Return (annualized) | -0.33% | -2.44% | |
| Volatility (annualized) | 5.7% | 4.2% | |
| Max Drawdown | -20.3% | -15.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 3, 2007 | Dec 1, 1997 |
BIV vs VIITX Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US). Over the past year BIV returned +0.99% while VIITX returned -2.14%. Year to date, BIV is down 1.01% versus a loss of 2.63% for VIITX.
Over three years, BIV compounded at +4.57% per year against +0.42% for VIITX; over five years the annualized figures are -0.33% and -2.44% respectively. Across the full 5-year window we track, BIV has the edge at +0.97% annualized vs -2.44%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BIV has been the more volatile fund, with annualized monthly volatility of 5.7% compared with 4.2% for VIITX. 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 -15.0% for VIITX. 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BIV charges 0.03% per year while VIITX charges 0.02%. On a $10,000 position that is $3 vs $2 annually, a gap of $1 per year that compounds over a long holding period. On income, BIV currently yields 4.28% against 4.59% for VIITX.
Holdings Overlap
BIV and VIITX share 32 holdings out of 1535 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BIV | Weight in VIITX | Difference |
|---|---|---|---|
| T 2.75 08/15/32 | 1.57% | 0.27% | 1.30% |
| BPLN 4.812 02/13/33 | 0.05% | 0.16% | 0.11% |
| KR 5 09/15/34 | 0.04% | 0.13% | 0.09% |
| ABBV 5.05 03/15/34 | Pro | Pro | Pro |
| PM 5.25 02/13/34 | Pro | Pro | Pro |
| EPD 4.85 01/31/34 | Pro | Pro | Pro |
| MS V5.25 04/21/34 MT | Pro | Pro | Pro |
| BPLN 5.227 11/17/34 | Pro | Pro | Pro |
| T 5.375 08/15/35 | Pro | Pro | Pro |
| BACR V7.437 11/02/33 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, BIV or VIITX?
BIV has an expense ratio of 0.03% while VIITX charges 0.02%. VIITX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, BIV or VIITX?
Over the past year BIV returned +0.99% vs -2.14% for VIITX, so BIV leads on 1-year performance. Over the longest common window we track (5 years), BIV annualized +0.97% vs -2.44% for VIITX. Past performance does not guarantee future results.
Which is riskier, BIV or VIITX?
BIV has been the more volatile fund at 5.7% annualized versus 4.2% for VIITX. Worst drawdown: BIV -20.3% vs VIITX -15.0%.
Should I hold both BIV and VIITX?
BIV and VIITX have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BIV and VIITX?
BIV and VIITX share 32 common holdings with a 1.1% weight overlap. Combined, they hold 1535 unique securities.
Which pays a higher dividend, BIV or VIITX?
BIV yields 4.28% while VIITX yields 4.59%, so VIITX currently pays the higher dividend yield.
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