BIV vs VTCIX
Vanguard Intermediate-Term Bond ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX delivered stronger 1-year returns. BIV offers more diversification with 2,336 holdings.
Side-by-Side Comparison
| Metric | BIV | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $28.8B | $5.2B | |
| Dividend Yield | 4.28% | 0.93% | |
| Holdings | 2,336 | 836 | |
| YTD Return | -0.66% | +11.54% | |
| 1Y Return | +1.97% | +19.63% | |
| 3Y Return (annualized) | +4.94% | +20.07% | |
| 5Y Return (annualized) | -0.25% | +10.90% | |
| Volatility (annualized) | 5.7% | 16.1% | |
| Max Drawdown | -20.3% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Feb 24, 1999 |
BIV vs VTCIX Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year BIV returned +1.97% while VTCIX returned +19.63%. Year to date, BIV is down 0.66% versus a gain of 11.54% for VTCIX.
Over three years, BIV compounded at +4.94% per year against +20.07% for VTCIX; over five years the annualized figures are -0.25% and +10.90% respectively. Across the full 5-year window we track, VTCIX has the edge at +10.90% annualized vs +0.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -26.0% for VTCIX. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while VTCIX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BIV currently yields 4.28% against 0.93% for VTCIX.
Holdings Overlap
BIV and VTCIX share 4 holdings out of 1103 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 VTCIX?
BIV has an expense ratio of 0.03% while VTCIX charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BIV or VTCIX?
Over the past year BIV returned +1.97% vs +19.63% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), BIV annualized +0.99% vs +10.90% for VTCIX. Past performance does not guarantee future results.
Which is riskier, BIV or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VTCIX -26.0%.
Should I hold both BIV and VTCIX?
BIV and VTCIX have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and VTCIX?
BIV and VTCIX share 4 common holdings with a 0.1% weight overlap. Combined, they hold 1103 unique securities.
Which pays a higher dividend, BIV or VTCIX?
BIV yields 4.28% while VTCIX yields 0.93%, so BIV currently pays the higher dividend yield.
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