BIV vs VNQ
Vanguard Intermediate-Term Bond ETF vs Vanguard Real Estate ETF
Which is better, BIV or VNQ?
VNQ has been ahead.
BIV has a lower expense ratio. VNQ 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 | VNQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.13% |
| AUM | $28.1B | $35.9B |
| Dividend Yield | 4.50% | 3.80% |
| Holdings | 2,327 | 144 |
| YTD Return | -3.03% | +4.97%Best |
| 1Y Return | -2.83% | +4.65%Best |
| 3Y Return (annualized) | +4.61% | +10.00%Best |
| 5Y Return (annualized) | -0.46% | +0.61%Best |
| Volatility (annualized) | 5.7%Best | 22.1% |
| Max Drawdown | -20.3%Best | -74.0% |
| $10,000 over 5 years | $9,772 | $10,309Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Mid Cap Blend |
| Inception | Apr 3, 2007 | Sep 23, 2004 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 10, 2007 to Oct 14, 2026 (19.5 years).
BIV vs VNQ 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 19.5 years both funds cover.
BIV vs VNQ Performance
Vanguard Intermediate-Term Bond ETF (BIV) is an ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year BIV returned -2.83% while VNQ returned +4.65%. Year to date, BIV is down 3.03% versus a gain of 4.97% for VNQ.
Over three years, BIV compounded at +4.61% per year against +10.00% for VNQ; over five years the annualized figures are -0.46% and +0.61% respectively. Across the full 20-year window we track, VNQ has the edge at +1.70% annualized vs +0.86%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 22.1% 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 -74.0% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.38. They move together some of the time, and apart the rest.
Fees and Cost Over Time
BIV charges 0.03% per year while VNQ charges 0.13%. On a $10,000 position that is $3 vs $13 annually, a gap of $10 per year that compounds over a long holding period. On income, BIV currently yields 4.50% against 3.80% for VNQ.
Holdings Overlap
At least 0.2% of VNQ's money is in holdings BIV also owns.
Stated as a floor: for BIV, our book for it covers 69.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 1,599 positions we hold weights for in BIV and 140 in VNQ, against full books of 2,327 and 144.
What only one of them owns
Measured across the 1,599 and 140 positions we hold weights for.
BIV holds 1,498 positions VNQ does not, 68.5% of the fund.
Largest: T 4 02/15/34 2.12%, T 4.375 05/15/34 2.11%, T 4.625 02/15/35 2.08%, T 4.25 11/15/34 2.07%, T 4.25 08/15/35 2.04%
Top Shared Holdings
| Stock | Weight in BIV | Weight in VNQ | Difference |
|---|---|---|---|
| MKLMarkel Group Inc | 0.57% | 0.17% | 0.40% |
You are not choosing between two funds in isolation.
Whichever of BIV and VNQ 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 VNQ?
BIV has an expense ratio of 0.03% while VNQ charges 0.13%. BIV is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, BIV or VNQ?
Over the past year BIV returned -2.83% vs +4.65% for VNQ, so VNQ leads on 1-year performance. Over the longest common window we track (20 years), BIV annualized +0.86% vs +1.70% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BIV or VNQ?
VNQ has been the more volatile fund at 22.1% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs VNQ -74.0%.
Should I hold both BIV and VNQ?
BIV and VNQ have a monthly-return correlation of 0.38, 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 VNQ?
BIV yields 4.50% while VNQ yields 3.80%, so BIV currently pays the higher dividend yield.
Is VNQ better than BIV?
BIV has a lower expense ratio. VNQ 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.