BIV vs VIITX
Vanguard Intermediate-Term Bond ETF vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Which is better, BIV or VIITX?
Nearly the same fund. VIITX costs less.
VIITX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.98.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BIV | VIITX |
|---|---|---|
| Expense Ratio | 0.03% | 0.02%Best |
| AUM | $29.0B | - |
| Dividend Yield | 4.32% | 4.60% |
| Holdings | 2,327 | 2,710 |
| YTD Price Return | -6.50% | -4.34% |
| 1Y Price Return | -6.79% | -4.21% |
| 3Y Price Return (annualized) | +0.56% | +0.37% |
| 5Y Price Return (annualized) | -4.08% | -2.73% |
| Volatility (annualized) | 7.0% | 4.3%Best |
| Max Drawdown | -21.3% | -14.6%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | - | Intermediate Term Bond |
| Inception | Apr 3, 2007 | Dec 1, 1997 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. BIV currently yields 4.32% and VIITX 4.60%.
Volatility and max drawdown are measured over the window both funds cover: Oct 4, 2021 to Sep 30, 2026 (5 years).
BIV vs VIITX Performance
Vanguard Intermediate-Term Bond ETF (BIV) is an 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's price moved -6.79% and VIITX's -4.21%, before the income each one paid out.
Over three years, BIV compounded at +0.56% per year against +0.37% for VIITX; over five years the annualized figures are -4.08% and -2.73% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BIV has been the more volatile fund, with annualized monthly volatility of 7.0% compared with 4.3% 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 -21.3% for BIV and -14.6% for VIITX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 4.32% against 4.60% for VIITX.
Structure and taxes
VIITX is a mutual fund and BIV is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 798 holdings in BIV and 691 in VIITX, totalling 60.9% and 32.7% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 73 positions appear in both.
73 positions in common, counted across the 798 positions we hold weights for in BIV and 691 in VIITX, against full books of 2,327 and 2,710.
Top Shared Holdings
| Stock | Weight in BIV | Weight in VIITX | Difference |
|---|---|---|---|
| T 4.25 05/15/35Us Treas Nts 4.25% 05/15/35 | 2.06% | 0.28% | 1.78% |
| MS V6.342 10/18/33Morgan Stanley Sr Unsec 6.342% 10-18-33/32 | 0.15% | 0.09% | 0.06% |
| SW 5.418 01/15/35Smurfit Westrock Financing Dac 5.42% Jan 15, 2035 | 0.03% | 0.18% | 0.15% |
| BPLN 4.812 02/13/33Bp Cap Mkts Amer 4.812 02/13/2033 | 0.05% | 0.15% | 0.10% |
| PM 5.375 02/15/33Philip Morris In 5.375 02/15/2033 | 0.05% | 0.15% | 0.10% |
| JPM V5.576 07/23/36Jpmorgan Chase & Co 5.58 07/23/2036 | 0.07% | 0.10% | 0.03% |
| FL FLSGEN 2.15 07/01Florida St Brd Of Admin Fin Co 2.154 07/01/2030 | 0.02% | 0.15% | 0.13% |
| BAC V2.972 02/04/33 | 0.09% | 0.07% | 0.02% |
| WMB 5.6 03/15/35Williams Companies Inc 5.6% Mar 15, 2035 | 0.02% | 0.14% | 0.12% |
| PM 5.25 02/13/34Philip Morris In 5.25 2034-02-13 | 0.03% | 0.11% | 0.08% |
You are not choosing between two funds in isolation.
Whichever of BIV and VIITX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $1 a year on a $10,000 investment.
Which is riskier, BIV or VIITX?
BIV has been the more volatile fund at 7.0% annualized versus 4.3% for VIITX. Worst drawdown: BIV -21.3% vs VIITX -14.6%.
Should I hold both BIV and VIITX?
BIV and VIITX have a monthly-return correlation of 0.98, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, BIV or VIITX?
BIV yields 4.32% while VIITX yields 4.60%, so VIITX currently pays the higher dividend yield.
Is it better to hold VIITX or BIV in a taxable account?
BIV is an ETF and VIITX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VIITX better than BIV?
VIITX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.98. Which one suits a particular account depends on what it is for. This is information, not a recommendation.