BIV vs VWO
Vanguard Intermediate-Term Bond ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, BIV or VWO?
VWO has been ahead.
BIV has a lower expense ratio. VWO led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BIV | VWO |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $28.8B | $122.0B |
| Dividend Yield | 4.28% | 2.39% |
| Holdings | 2,336 | 6,334 |
| YTD Return | -0.93% | +11.98%Best |
| 1Y Return | +0.32% | +22.71%Best |
| 3Y Return (annualized) | +4.59% | +18.22%Best |
| 5Y Return (annualized) | -0.22% | +6.14%Best |
| Volatility (annualized) | 5.7%Best | 20.3% |
| Max Drawdown | -20.3%Best | -68.3% |
| $10,000 over 5 years | $9,890 | $13,471Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Blend |
| Inception | Apr 3, 2007 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 10, 2007 to Sep 4, 2026 (19.4 years).
BIV vs VWO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.4 years both funds cover.
BIV vs VWO Performance
Vanguard Intermediate-Term Bond ETF (BIV) is an ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year BIV returned +0.32% while VWO returned +22.71%. Year to date, BIV is down 0.93% versus a gain of 11.98% for VWO.
Over three years, BIV compounded at +4.59% per year against +18.22% for VWO; over five years the annualized figures are -0.22% and +6.14% respectively. Across the full 19-year window we track, VWO has the edge at +2.97% annualized vs +0.97%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.3% 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 -68.3% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.24. They move largely independently of each other.
Fees and Cost Over Time
BIV charges 0.03% per year while VWO charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, BIV currently yields 4.28% against 2.39% for VWO.
Holdings Overlap
We hold position weights for 282 holdings in BIV and 4,695 in VWO, totalling 19.0% and 88.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 282 positions we hold weights for in BIV and 4,695 in VWO, against full books of 2,336 and 6,334.
You are not choosing between two funds in isolation.
Whichever of BIV and VWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BIV or VWO?
BIV has an expense ratio of 0.03% while VWO charges 0.06%. BIV is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, BIV or VWO?
Over the past year BIV returned +0.32% vs +22.71% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +0.97% vs +2.97% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BIV or VWO?
VWO has been the more volatile fund at 20.3% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VWO -68.3%.
Should I hold both BIV and VWO?
BIV and VWO have a monthly-return correlation of 0.24, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BIV or VWO?
BIV yields 4.28% while VWO yields 2.39%, so BIV currently pays the higher dividend yield.
Is VWO better than BIV?
BIV has a lower expense ratio. VWO led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.