BIV vs VYM
Vanguard Intermediate-Term Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
BIV has a lower expense ratio. VYM delivered stronger 1-year returns. BIV offers more diversification with 2101 holdings.
Side-by-Side Comparison
| Metric | BIV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $29.3B | $79.0B | |
| Dividend Yield | 4.18% | 2.86% | |
| Holdings | 2,321 | 568 | |
| YTD Return | -1.07% | +16.10% | |
| 1Y Return | +1.44% | +25.99% | |
| 3Y Return (annualized) | +4.45% | +18.29% | |
| 5Y Return (annualized) | -0.21% | +12.35% | |
| Volatility (annualized) | 5.7% | 14.6% | |
| Max Drawdown | -20.3% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Nov 10, 2006 |
BIV vs VYM Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BIV returned +1.44% while VYM returned +25.99%. Year to date, BIV is down 1.07% versus a gain of 16.10% for VYM.
Over three years, BIV compounded at +4.45% per year against +18.29% for VYM; over five years the annualized figures are -0.21% and +12.35% respectively. Across the full 19-year window we track, VYM has the edge at +7.08% annualized vs +0.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, BIV currently yields 4.18% against 2.86% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, BIV or VYM?
BIV has an expense ratio of 0.03% while VYM charges 0.04%. BIV is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, BIV or VYM?
Over the past year BIV returned +1.44% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +0.97% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, BIV or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VYM -58.8%.
Should I hold both BIV and VYM?
BIV and VYM have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and VYM?
BIV and VYM share 2 common holdings with a 0.1% weight overlap. Combined, they hold 2657 unique securities.
Which pays a higher dividend, BIV or VYM?
BIV yields 4.18% while VYM yields 2.86%, so BIV currently pays the higher dividend yield.
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