TAGG vs. BIV

Last updated Jun 23, 2026

TAGG (T. Rowe Price QM U.S. Bond ETF) and BIV (Vanguard Intermediate-Term Bond Index ETF) are both Intermediate Core Bond funds. TAGG is actively managed, while BIV is passively managed. Over the past 3 years, TAGG returned 3.99%/yr vs 4.34%/yr for BIV. Their correlation of 0.93 suggests significant overlap in exposure. TAGG charges 0.08%/yr vs 0.03%/yr for BIV.

Performance

TAGG vs. BIV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price QM U.S. Bond ETF (TAGG) and Vanguard Intermediate-Term Bond Index ETF (BIV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAGG achieves a 0.41% return, which is significantly higher than BIV's -0.24% return.

TAGG

• 1D: -0.22%
• 1M: 0.71%
• YTD: 0.41%
• 6M: 0.52%
• 1Y: 4.63%
• 3Y*: 3.99%
• 5Y*: —
• 10Y*: —

BIV

• 1D: -0.25%
• 1M: 0.42%
• YTD: -0.24%
• 6M: -0.15%
• 1Y: 4.06%
• 3Y*: 4.34%
• 5Y*: 0.21%
• 10Y*: 1.82%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TAGG vs. BIV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
TAGG T. Rowe Price QM U.S. Bond ETF	0.41%	7.40%	1.73%	5.72%	-12.63%	-0.01%
BIV Vanguard Intermediate-Term Bond Index ETF	-0.24%	8.52%	1.57%	6.07%	-13.21%	-0.30%

Correlation

The correlation between TAGG and BIV is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (All Time) Calculated using the full available price history since Sep 29, 2021	0.93

The correlation between TAGG and BIV has been stable across timeframes, ranging from 0.93 to 0.94 - a consistent structural relationship.

Return for Risk

TAGG vs. BIV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TAGG

TAGG Risk / Return Rank: 34
TAGG Sharpe Ratio Rank: 36
TAGG Sortino Ratio Rank: 37
TAGG Omega Ratio Rank: 35
TAGG Calmar Ratio Rank: 30
TAGG Martin Ratio Rank: 30

BIV

BIV Risk / Return Rank: 28
BIV Sharpe Ratio Rank: 29
BIV Sortino Ratio Rank: 28
BIV Omega Ratio Rank: 26
BIV Calmar Ratio Rank: 27
BIV Martin Ratio Rank: 27

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TAGG vs. BIV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price QM U.S. Bond ETF (TAGG) and Vanguard Intermediate-Term Bond Index 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	TAGG	BIV	Difference
Sharpe ratio: Return per unit of total volatility	1.26	1.01	+0.25
Sortino ratio: Return per unit of downside risk	1.86	1.51	+0.36
Omega ratio: Gain probability vs. loss probability	1.23	1.17	+0.05
Calmar ratio: Return relative to maximum drawdown	1.46	1.28	+0.17
Martin ratio: Return relative to average drawdown	4.04	3.59	+0.45

TAGG vs. BIV - Sharpe Ratio Comparison

The current TAGG Sharpe Ratio is 1.26, which is comparable to the BIV Sharpe Ratio of 1.01. The chart below compares the historical Sharpe Ratios of TAGG and BIV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TAGG vs. BIV - Drawdown Comparison

The maximum TAGG drawdown since its inception was -17.26%, smaller than the maximum BIV drawdown of -18.95%. Use the drawdown chart below to compare losses from any high point for TAGG and BIV.

Drawdown Indicators

	TAGG	BIV	Difference
Max Drawdown Largest peak-to-trough decline	-17.26%	-18.95%	+1.69%
Max Drawdown (1Y) Largest decline over 1 year	-3.19%	-3.18%	-0.01%
Max Drawdown (3Y) Largest decline over 3 years	-6.40%	-6.07%	-0.33%
Max Drawdown (5Y) Largest decline over 5 years	—	-18.74%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-18.95%	—
Current Drawdown Current decline from peak	-1.80%	-2.04%	+0.24%
Average Drawdown Average peak-to-trough decline	-6.81%	-3.38%	-3.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.15%	1.13%	+0.02%

Volatility

TAGG vs. BIV - Volatility Comparison

The current volatility for T. Rowe Price QM U.S. Bond ETF (TAGG) is 0.97%, while Vanguard Intermediate-Term Bond Index ETF (BIV) has a volatility of 1.22%. This indicates that TAGG experiences smaller price fluctuations and is considered to be less risky than BIV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAGG	BIV	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.97%	1.22%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	2.75%	3.03%	-0.28%
Volatility (1Y) Calculated over the trailing 1-year period	3.71%	4.04%	-0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.51%	6.40%	+0.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.51%	5.51%	+1.00%

TAGG vs. BIV - Expense Ratio Comparison

TAGG has a 0.08% expense ratio, which is higher than BIV's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

TAGG vs. BIV - Dividend Comparison

TAGG's dividend yield for the trailing twelve months is around 4.57%, more than BIV's 4.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BIV Vanguard Intermediate-Term Bond Index ETF	4.22%	4.01%	3.79%	3.09%	2.41%	3.42%	2.95%	2.75%	2.88%	2.69%	3.01%	3.02%
TAGG T. Rowe Price QM U.S. Bond ETF	4.57%	4.36%	4.36%	3.48%	3.67%	0.33%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAGG and BIV in my portfolio?

With a correlation of 0.94, TAGG and BIV move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, TAGG or BIV?

BIV has higher volatility (1.22%) compared to TAGG (0.97%). In terms of maximum drawdown, TAGG dropped -17.26% vs BIV's -18.95%.

Which ETF is better, TAGG or BIV?

On 3-year performance, BIV leads with 4.34% vs 3.99% for TAGG. On fees, BIV is cheaper at 0.03% per year. On volatility, TAGG has been the lower-risk option at 0.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAGG or BIV?

Over the 3-year period, BIV has performed better with a 4.34% return vs 3.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAGG or BIV?

BIV is cheaper with a 0.03% expense ratio, compared with 0.08% for TAGG.

Which ETF pays a higher dividend yield, TAGG or BIV?

TAGG has the higher dividend yield at 4.57%, compared with 4.22% for BIV.

What is the main difference between TAGG and BIV?

They also come from different issuers: T. Rowe Price and Vanguard. Their fees differ too: 0.08% for TAGG and 0.03% for BIV.

Which has better risk-adjusted returns?

TAGG currently has the higher Sharpe Ratio (1.26 vs 1.01), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.