BIV vs XLV
Vanguard Intermediate-Term Bond ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
BIV has a lower expense ratio. XLV delivered stronger 1-year returns. BIV offers more diversification with 2,321 holdings.
Side-by-Side Comparison
| Metric | BIV | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $29.3B | $42.1B | |
| Dividend Yield | 4.18% | 1.60% | |
| Holdings | 2,321 | 62 | |
| YTD Return | -0.60% | +9.20% | |
| 1Y Return | +1.50% | +28.53% | |
| 3Y Return (annualized) | +4.67% | +9.18% | |
| 5Y Return (annualized) | -0.21% | +6.43% | |
| Volatility (annualized) | 5.7% | 14.2% | |
| Max Drawdown | -20.3% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Dec 16, 1998 |
BIV vs XLV Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and State Street Health Care Select Sector SPDR ETF (XLV) is a ETF from SPDR State Street Global Advisors. Over the past year BIV returned +1.50% while XLV returned +28.53%. Year to date, BIV is down 0.60% versus a gain of 9.20% for XLV.
Over three years, BIV compounded at +4.67% per year against +9.18% for XLV; over five years the annualized figures are -0.21% and +6.43% respectively. Across the full 19-year window we track, XLV has the edge at +7.48% annualized vs +1.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLV has been the more volatile fund, with annualized monthly volatility of 14.2% 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 -40.6% for XLV. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while XLV charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, BIV currently yields 4.18% against 1.60% for XLV.
Holdings Overlap
BIV and XLV share 0 holdings out of 2161 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BIV or XLV?
BIV has an expense ratio of 0.03% while XLV charges 0.08%. BIV is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, BIV or XLV?
Over the past year BIV returned +1.50% vs +28.53% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +1.00% vs +7.48% for XLV. Past performance does not guarantee future results.
Which is riskier, BIV or XLV?
XLV has been the more volatile fund at 14.2% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs XLV -40.6%.
Should I hold both BIV and XLV?
BIV and XLV have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and XLV?
BIV and XLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2161 unique securities.
Which pays a higher dividend, BIV or XLV?
BIV yields 4.18% while XLV yields 1.60%, so BIV currently pays the higher dividend yield.
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