VCIT vs. BIV
VCIT (Vanguard Intermediate-Term Corporate Bond ETF) and BIV (Vanguard Intermediate-Term Bond Index ETF) are both exchange-traded funds - VCIT is a Corporate Bonds fund tracking the Bloomberg U.S. 5-10 Year Corporate Bond Index, while BIV is a Intermediate Core Bond fund tracking the Bloomberg U.S. 5–10 Year Government/Credit Float Adjusted Bond Index. Both are passively managed. Over the past 10 years, VCIT returned 2.85%/yr vs 1.83%/yr for BIV. Their correlation of 0.89 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.
Performance
VCIT vs. BIV - Performance Comparison
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Returns By Period
In the year-to-date period, VCIT achieves a -0.26% return, which is significantly higher than BIV's -0.67% return. Over the past 10 years, VCIT has outperformed BIV with an annualized return of 2.85%, while BIV has yielded a comparatively lower 1.83% annualized return.
VCIT
- 1D
- -0.01%
- 1M
- -0.79%
- YTD
- -0.26%
- 6M
- 0.06%
- 1Y
- 5.98%
- 3Y*
- 6.04%
- 5Y*
- 1.04%
- 10Y*
- 2.85%
BIV
- 1D
- -0.05%
- 1M
- -0.94%
- YTD
- -0.67%
- 6M
- -0.33%
- 1Y
- 4.70%
- 3Y*
- 4.27%
- 5Y*
- 0.08%
- 10Y*
- 1.83%
VCIT vs. BIV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCIT Vanguard Intermediate-Term Corporate Bond ETF | -0.26% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
BIV Vanguard Intermediate-Term Bond Index ETF | -0.67% | 8.52% | 1.57% | 6.07% | -13.21% | -2.40% | 9.67% | 10.34% | -0.19% | 3.65% |
Correlation
The correlation between VCIT and BIV is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.89 |
The correlation between VCIT and BIV has been stable across timeframes, ranging from 0.89 to 0.97 - a consistent structural relationship.
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Return for Risk
VCIT vs. BIV — Risk / Return Rank
VCIT
BIV
VCIT vs. BIV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) 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.
| VCIT | BIV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.30 | ||
| Sortino ratioReturn per unit of downside risk | +0.41 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.21 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.03 | 1.49 | +0.54 |
| Martin ratioReturn relative to average drawdown | 6.67 | 4.40 | +2.27 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VCIT | BIV | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.48 | 1.18 | +0.30 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.16 | 0.01 | +0.15 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.46 | 0.33 | +0.12 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.75 | 0.64 | +0.11 |
Drawdowns
VCIT vs. BIV - Drawdown Comparison
The maximum VCIT drawdown since its inception was -20.56%, which is greater than BIV's maximum drawdown of -18.95%. Use the drawdown chart below to compare losses from any high point for VCIT and BIV.
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Drawdown Indicators
| VCIT | BIV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.56% | -18.95% | -1.61% |
Max Drawdown (1Y)Largest decline over 1 year | -2.96% | -3.18% | +0.22% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -6.07% | -0.04% |
Max Drawdown (5Y)Largest decline over 5 years | -20.56% | -18.74% | -1.82% |
Max Drawdown (10Y)Largest decline over 10 years | -20.56% | -18.95% | -1.61% |
Current DrawdownCurrent decline from peak | -1.79% | -2.46% | +0.67% |
Average DrawdownAverage peak-to-trough decline | -3.16% | -3.39% | +0.23% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 1.07% | -0.17% |
Volatility
VCIT vs. BIV - Volatility Comparison
Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and Vanguard Intermediate-Term Bond Index ETF (BIV) have volatilities of 1.39% and 1.35%, 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.
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Volatility by Period
| VCIT | BIV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.39% | 1.35% | +0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 3.10% | 2.93% | +0.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.07% | 4.00% | +0.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.61% | 6.40% | +0.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.28% | 5.51% | +0.77% |
VCIT vs. BIV - Expense Ratio Comparison
Both VCIT and BIV have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VCIT vs. BIV - Dividend Comparison
VCIT's dividend yield for the trailing twelve months is around 4.82%, more than BIV's 4.24% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BIV Vanguard Intermediate-Term Bond Index ETF | 4.24% | 4.01% | 3.79% | 3.09% | 2.41% | 3.42% | 2.95% | 2.75% | 2.88% | 2.69% | 3.01% | 3.02% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.82% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
Frequently Asked Questions
With a correlation of 0.97, VCIT 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.
VCIT has higher volatility (1.39%) compared to BIV (1.35%). In terms of maximum drawdown, VCIT dropped -20.56% vs BIV's -18.95%.
On 10-year performance, VCIT leads with 2.85% vs 1.83% for BIV. Both ETFs have the same 0.03% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VCIT has performed better with a 2.85% return vs 1.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCIT and BIV have the same expense ratio: 0.03% per year.
VCIT has the higher dividend yield at 4.82%, compared with 4.24% for BIV.
VCIT is categorized as Corporate Bonds, while BIV is Intermediate Core Bond. VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index, while BIV tracks Bloomberg U.S. 5–10 Year Government/Credit Float Adjusted Bond Index.
VCIT currently has the higher Sharpe Ratio (1.48 vs 1.18), 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.
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