BIV vs VO
Vanguard Intermediate-Term Bond ETF vs Vanguard Mid-Cap ETF
Quick Verdict
VO delivered stronger 1-year returns. BIV offers more diversification with 2101 holdings.
Side-by-Side Comparison
| Metric | BIV | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $29.3B | $105.9B | |
| Dividend Yield | 4.18% | 1.53% | |
| Holdings | 2,321 | 293 | |
| YTD Return | -1.00% | +14.37% | |
| 1Y Return | +1.52% | +19.39% | |
| 3Y Return (annualized) | +4.54% | +16.44% | |
| 5Y Return (annualized) | -0.22% | +8.03% | |
| Volatility (annualized) | 5.7% | 16.9% | |
| Max Drawdown | -20.3% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Jan 26, 2004 |
BIV vs VO Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year BIV returned +1.52% while VO returned +19.39%. Year to date, BIV is down 1.00% versus a gain of 14.37% for VO.
Over three years, BIV compounded at +4.54% per year against +16.44% for VO; over five years the annualized figures are -0.22% and +8.03% respectively. Across the full 19-year window we track, VO has the edge at +9.23% annualized vs +0.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VO has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -60.3% for VO. 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while VO charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BIV currently yields 4.18% against 1.53% for VO.
Holdings Overlap
BIV and VO share 3 holdings out of 2377 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BIV or VO?
BIV has an expense ratio of 0.03% while VO charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BIV or VO?
Over the past year BIV returned +1.52% vs +19.39% for VO, so VO leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +0.97% vs +9.23% for VO. Past performance does not guarantee future results.
Which is riskier, BIV or VO?
VO has been the more volatile fund at 16.9% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VO -60.3%.
Should I hold both BIV and VO?
BIV and VO have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and VO?
BIV and VO share 3 common holdings with a 0.1% weight overlap. Combined, they hold 2377 unique securities.
Which pays a higher dividend, BIV or VO?
BIV yields 4.18% while VO yields 1.53%, so BIV currently pays the higher dividend yield.
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