BIV vs XLF
Vanguard Intermediate-Term Bond ETF vs State Street Financial Select Sector SPDR ETF
Which is better, BIV or XLF?
XLF has been ahead.
BIV has a lower expense ratio. XLF 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 | XLF |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $28.1B | $51.9B |
| Dividend Yield | 4.50% | 1.40% |
| Holdings | 2,327 | 160 |
| YTD Return | -3.03% | +0.47%Best |
| 1Y Return | -2.83% | +4.02%Best |
| 3Y Return (annualized) | +4.61% | +19.43%Best |
| 5Y Return (annualized) | -0.46% | +8.82%Best |
| Volatility (annualized) | 5.7%Best | 23.0% |
| Max Drawdown | -20.3%Best | -83.8% |
| $10,000 over 5 years | $9,772 | $15,260Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Value |
| Inception | Apr 3, 2007 | Dec 16, 1998 |
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 XLF 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 XLF Performance
Vanguard Intermediate-Term Bond ETF (BIV) is an ETF from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors. Over the past year BIV returned -2.83% while XLF returned +4.02%. Year to date, BIV is down 3.03% versus a gain of 0.47% for XLF.
Over three years, BIV compounded at +4.61% per year against +19.43% for XLF; over five years the annualized figures are -0.46% and +8.82% respectively. Across the full 20-year window we track, XLF has the edge at +2.68% annualized vs +0.86%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 23.0% 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 -83.8% for XLF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.08. They move largely independently of each other.
Fees and Cost Over Time
BIV charges 0.03% per year while XLF 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 4.50% against 1.40% for XLF.
Holdings Overlap
At least 0.8% of XLF'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 77 in XLF, against full books of 2,327 and 160.
Top Shared Holdings
| Stock | Weight in BIV | Weight in XLF | Difference |
|---|---|---|---|
| AONAon Public Limited Company Cl. A | 0.01% | 0.80% | 0.79% |
You are not choosing between two funds in isolation.
Whichever of BIV and XLF 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 XLF?
BIV has an expense ratio of 0.03% while XLF charges 0.08%. BIV is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, BIV or XLF?
Over the past year BIV returned -2.83% vs +4.02% for XLF, so XLF leads on 1-year performance. Over the longest common window we track (20 years), BIV annualized +0.86% vs +2.68% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BIV or XLF?
XLF has been the more volatile fund at 23.0% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs XLF -83.8%.
Should I hold both BIV and XLF?
BIV and XLF have a monthly-return correlation of 0.08, 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 XLF?
BIV yields 4.50% while XLF yields 1.40%, so BIV currently pays the higher dividend yield.
Is XLF better than BIV?
BIV has a lower expense ratio. XLF 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.