BIV vs VMLUX
Vanguard Intermediate-Term Bond ETF vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
BIV has a lower expense ratio. BIV delivered stronger 1-year returns. BIV offers more diversification with 2101 holdings.
Side-by-Side Comparison
| Metric | BIV | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $29.3B | $34.1B | |
| Dividend Yield | 4.18% | 2.89% | |
| Holdings | 2,321 | 7,110 | |
| YTD Return | -1.00% | -0.64% | |
| 1Y Return | +1.52% | -0.36% | |
| 3Y Return (annualized) | +4.54% | +0.77% | |
| 5Y Return (annualized) | -0.22% | -0.58% | |
| Volatility (annualized) | 5.7% | 2.8% | |
| Max Drawdown | -20.3% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Apr 3, 2007 | Feb 12, 2001 |
BIV vs VMLUX Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US). Over the past year BIV returned +1.52% while VMLUX returned -0.36%. Year to date, BIV is down 1.00% versus a loss of 0.64% for VMLUX.
Over three years, BIV compounded at +4.54% per year against +0.77% for VMLUX; over five years the annualized figures are -0.22% and -0.58% respectively. Across the full 5-year window we track, BIV has the edge at +0.97% annualized vs -0.58%. 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 2.8% for VMLUX. 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 -8.5% for VMLUX. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BIV charges 0.03% per year while VMLUX charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, BIV currently yields 4.18% against 2.89% for VMLUX.
Holdings Overlap
BIV and VMLUX share 0 holdings out of 3016 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 VMLUX?
BIV has an expense ratio of 0.03% while VMLUX charges 0.09%. BIV is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, BIV or VMLUX?
Over the past year BIV returned +1.52% vs -0.36% for VMLUX, so BIV leads on 1-year performance. Over the longest common window we track (5 years), BIV annualized +0.97% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, BIV or VMLUX?
BIV has been the more volatile fund at 5.7% annualized versus 2.8% for VMLUX. Worst drawdown: BIV -20.3% vs VMLUX -8.5%.
Should I hold both BIV and VMLUX?
BIV and VMLUX have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and VMLUX?
BIV and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3016 unique securities.
Which pays a higher dividend, BIV or VMLUX?
BIV yields 4.18% while VMLUX yields 2.89%, so BIV currently pays the higher dividend yield.
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