BIV vs VNQ
Vanguard Intermediate-Term Bond ETF vs Vanguard Real Estate ETF
Quick Verdict
BIV has a lower expense ratio. VNQ delivered stronger 1-year returns. BIV offers more diversification with 2,336 holdings.
Side-by-Side Comparison
| Metric | BIV | VNQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.13% | |
| AUM | $28.8B | $39.3B | |
| Dividend Yield | 4.28% | 3.49% | |
| Holdings | 2,336 | 144 | |
| YTD Return | -0.66% | +13.46% | |
| 1Y Return | +1.97% | +13.14% | |
| 3Y Return (annualized) | +4.94% | +11.55% | |
| 5Y Return (annualized) | -0.25% | +2.33% | |
| Volatility (annualized) | 5.7% | 21.4% | |
| Max Drawdown | -20.3% | -75.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Sep 23, 2004 |
BIV vs VNQ Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US). Over the past year BIV returned +1.97% while VNQ returned +13.14%. Year to date, BIV is down 0.66% versus a gain of 13.46% for VNQ.
Over three years, BIV compounded at +4.94% per year against +11.55% for VNQ; over five years the annualized figures are -0.25% and +2.33% respectively. Across the full 19-year window we track, VNQ has the edge at +4.13% annualized vs +0.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -75.8% for VNQ. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while VNQ charges 0.13%. On a $10,000 position that is $3 vs $13 annually, a gap of $10 per year that compounds over a long holding period. On income, BIV currently yields 4.28% against 3.49% for VNQ.
Holdings Overlap
BIV and VNQ share 0 holdings out of 426 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 VNQ?
BIV has an expense ratio of 0.03% while VNQ charges 0.13%. BIV is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, BIV or VNQ?
Over the past year BIV returned +1.97% vs +13.14% for VNQ, so VNQ leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +0.99% vs +4.13% for VNQ. Past performance does not guarantee future results.
Which is riskier, BIV or VNQ?
VNQ has been the more volatile fund at 21.4% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VNQ -75.8%.
Should I hold both BIV and VNQ?
BIV and VNQ have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and VNQ?
BIV and VNQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 426 unique securities.
Which pays a higher dividend, BIV or VNQ?
BIV yields 4.28% while VNQ yields 3.49%, so BIV currently pays the higher dividend yield.
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