BND vs. BIV
Compare and contrast key facts about Vanguard Total Bond Market ETF (BND) and Vanguard Intermediate-Term Bond ETF (BIV).
BND and BIV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. BIV is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 5. It was launched on Apr 3, 2007. Both BND and BIV are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BND or BIV.
Key characteristics
| BND | BIV | |
|---|---|---|
| YTD Return | -3.21% | -3.33% |
| 1Y Return | -1.42% | -1.71% |
| 3Y Return (Ann) | -3.66% | -3.60% |
| 5Y Return (Ann) | -0.22% | 0.23% |
| 10Y Return (Ann) | 1.17% | 1.63% |
| Sharpe Ratio | -0.26 | -0.30 |
| Daily Std Dev | 6.75% | 7.09% |
| Max Drawdown | -18.84% | -18.95% |
| Current Drawdown | -13.46% | -13.21% |
Correlation
The correlation between BND and BIV is 0.90, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
BND vs. BIV - Performance Comparison
The year-to-date returns for both stocks are quite close, with BND having a -3.21% return and BIV slightly lower at -3.33%. Over the past 10 years, BND has underperformed BIV with an annualized return of 1.17%, while BIV has yielded a comparatively higher 1.63% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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BND vs. BIV - Expense Ratio Comparison
BND has a 0.03% expense ratio, which is lower than BIV's 0.04% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
BND vs. BIV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and Vanguard Intermediate-Term Bond ETF (BIV). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
BND vs. BIV - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.37%, less than BIV's 3.43% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.37% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
BIV Vanguard Intermediate-Term Bond ETF | 3.43% | 3.09% | 2.41% | 3.42% | 2.95% | 2.75% | 2.88% | 2.69% | 2.38% | 3.02% | 3.96% | 4.22% |
Drawdowns
BND vs. BIV - Drawdown Comparison
The maximum BND drawdown since its inception was -18.84%, roughly equal to the maximum BIV drawdown of -18.95%. Use the drawdown chart below to compare losses from any high point for BND and BIV. For additional features, visit the drawdowns tool.
Volatility
BND vs. BIV - Volatility Comparison
Vanguard Total Bond Market ETF (BND) and Vanguard Intermediate-Term Bond ETF (BIV) have volatilities of 1.84% and 1.90%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.