BIV vs VTBNX
Vanguard Intermediate-Term Bond ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. BIV delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | BIV | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.02% | |
| AUM | $28.8B | $207.3B | |
| Dividend Yield | 4.28% | 3.79% | |
| Holdings | 2,336 | 15,623 | |
| YTD Return | -0.66% | -2.49% | |
| 1Y Return | +1.97% | -1.68% | |
| 3Y Return (annualized) | +4.94% | +0.72% | |
| 5Y Return (annualized) | -0.25% | -3.58% | |
| Volatility (annualized) | 5.7% | 6.3% | |
| Max Drawdown | -20.3% | -21.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 3, 2007 | Feb 17, 2009 |
BIV vs VTBNX Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year BIV returned +1.97% while VTBNX returned -1.68%. Year to date, BIV is down 0.66% versus a loss of 2.49% for VTBNX.
Over three years, BIV compounded at +4.94% per year against +0.72% for VTBNX; over five years the annualized figures are -0.25% and -3.58% respectively. Across the full 5-year window we track, BIV has the edge at +0.99% annualized vs -3.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTBNX has been the more volatile fund, with annualized monthly volatility of 6.3% 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 -21.5% for VTBNX. 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 0.99. 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 VTBNX 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 4.28% against 3.79% for VTBNX.
Holdings Overlap
BIV and VTBNX share 244 holdings out of 12766 unique holdings combined, representing a 2.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BIV | Weight in VTBNX | Difference |
|---|---|---|---|
| T 4 02/15/34 | 2.15% | 0.33% | 1.82% |
| T 4.25 08/15/35 | 2.05% | 0.36% | 1.69% |
| T 3.875 08/15/33 | 1.85% | 0.28% | 1.57% |
| T 2.875 05/15/32 | Pro | Pro | Pro |
| T 3.375 05/15/33 | Pro | Pro | Pro |
| T 2.75 08/15/32 | Pro | Pro | Pro |
| T 3.75 08/31/31 | Pro | Pro | Pro |
| T 4 04/30/32 | Pro | Pro | Pro |
| JPM V4.912 07/25/33 | Pro | Pro | Pro |
| BAC V5.288 04/25/34 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, BIV or VTBNX?
BIV has an expense ratio of 0.03% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, BIV or VTBNX?
Over the past year BIV returned +1.97% vs -1.68% for VTBNX, so BIV leads on 1-year performance. Over the longest common window we track (5 years), BIV annualized +0.99% vs -3.58% for VTBNX. Past performance does not guarantee future results.
Which is riskier, BIV or VTBNX?
VTBNX has been the more volatile fund at 6.3% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VTBNX -21.5%.
Should I hold both BIV and VTBNX?
BIV and VTBNX have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BIV and VTBNX?
BIV and VTBNX share 244 common holdings with a 2.8% weight overlap. Combined, they hold 12766 unique securities.
Which pays a higher dividend, BIV or VTBNX?
BIV yields 4.28% while VTBNX yields 3.79%, so BIV currently pays the higher dividend yield.
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