BIV vs VIPIX
Vanguard Intermediate-Term Bond ETF vs Vanguard Inflation Protected Securities Fund Insti Shs
Which is better, BIV or VIPIX?
BIV costs less.
BIV has a lower expense ratio.
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 | VIPIX |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.07% |
| AUM | $29.0B | $12.4B |
| Dividend Yield | 4.32% | 5.20% |
| Holdings | 2,327 | 69 |
| YTD Price Return | -6.50% | -3.74% |
| 1Y Price Return | -6.79% | -5.86% |
| 3Y Price Return (annualized) | +0.56% | -0.30% |
| 5Y Price Return (annualized) | -4.08% | -4.98% |
| Volatility (annualized) | 7.0% | 6.7%Best |
| Max Drawdown | -21.3%Best | -24.4% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | - | Inflation Protection |
| Inception | Apr 3, 2007 | Dec 12, 2003 |
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 VIPIX 5.20%.
Volatility and max drawdown are measured over the window both funds cover: Oct 4, 2021 to Sep 30, 2026 (5 years).
BIV vs VIPIX Performance
Vanguard Intermediate-Term Bond ETF (BIV) is an ETF from Vanguard (US) and Vanguard Inflation Protected Securities Fund Insti Shs (VIPIX) is a mutual fund from Vanguard (US). Over the past year BIV's price moved -6.79% and VIPIX's -5.86%, before the income each one paid out.
Over three years, BIV compounded at +0.56% per year against -0.30% for VIPIX; over five years the annualized figures are -4.08% and -4.98% 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 6.7% for VIPIX. 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 -24.4% for VIPIX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BIV charges 0.03% per year while VIPIX charges 0.07%. On a $10,000 position that is $3 vs $7 annually, a gap of $4 per year that compounds over a long holding period. On income, BIV currently yields 4.32% against 5.20% for VIPIX.
Structure and taxes
VIPIX 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 52 in VIPIX, totalling 60.9% and 74.3% 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, 9 positions appear in both.
9 positions in common, counted across the 798 positions we hold weights for in BIV and 52 in VIPIX, against full books of 2,327 and 69.
Top Shared Holdings
| Stock | Weight in BIV | Weight in VIPIX | Difference |
|---|---|---|---|
| T 4 02/15/34United States Treasury 4.00% 15-Feb-2034 | 2.15% | 0.08% | 2.07% |
| T 4.375 05/15/34United States Treasury Note/Bondus Treasury N/B | 2.14% | 0.08% | 2.06% |
| T 4.625 02/15/35Us T-Note 4.625% 02/15/35 | 2.09% | 0.08% | 2.01% |
| T 4.25 11/15/34Us Treas Nts 4.25% 11/15/34 | 2.09% | 0.08% | 2.01% |
| T 4.25 05/15/35Us Treas Nts 4.25% 05/15/35 | 2.06% | 0.08% | 1.98% |
| T 3.875 08/15/34Us Treas Nts 3.875% 08/15/34 | 2.03% | 0.08% | 1.95% |
| T 4.5 11/15/33United States Treasury Note/Bond 4.50% 11/15/2033 | 2.05% | 0.05% | 2.00% |
| T 4.25 08/15/35United States Treasury Note/Bond 4.25% 08/15/2035 | 2.05% | 0.04% | 2.01% |
| T 4.125 02/29/32Treasury Note (Otr) 4.13% Feb 29, 2032 | 0.80% | 0.03% | 0.77% |
You are not choosing between two funds in isolation.
Whichever of BIV and VIPIX 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 VIPIX?
BIV has an expense ratio of 0.03% while VIPIX charges 0.07%. BIV is the cheaper option, by $4 a year on a $10,000 investment.
Which is riskier, BIV or VIPIX?
BIV has been the more volatile fund at 7.0% annualized versus 6.7% for VIPIX. Worst drawdown: BIV -21.3% vs VIPIX -24.4%.
Should I hold both BIV and VIPIX?
BIV and VIPIX have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BIV or VIPIX?
BIV yields 4.32% while VIPIX yields 5.20%, so VIPIX currently pays the higher dividend yield.
Is it better to hold VIPIX or BIV in a taxable account?
BIV is an ETF and VIPIX 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 VIPIX better than BIV?
BIV has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.