BIV — Vanguard Intermediate-Term Bond ETF
BIV provides intermediate-term bond exposure across US government and investment-grade corporate bonds with maturities between 5 and 10 years. With a duration of approximately 6 years, BIV occupies the middle ground between short-term safety and long-term yield. It blends Treasuries, agency bonds, and investment-grade corporates for a diversified intermediate-duration fixed-income position.
Top Holdings
Strategy
- →Use as a core intermediate bond holding in a diversified fixed-income allocation
- →Balance between the conservatism of BSV and the higher yield of BLV
- →Pair with equity funds for a classic 60/40 or similar balanced portfolio approach
- →Increase allocation when expecting stable or falling interest rates
Best For
- ✓Balanced investors who want moderate yield with moderate rate risk
- ✓Long-term investors building a diversified low-cost bond portfolio through Vanguard
- ✓Those seeking a middle ground between short-term safety (BSV) and long-term yield (BLV)
- ✓Investors who prefer a single fund covering the entire intermediate bond market
Key Risks
- ⚠Moderate interest rate risk with ~6 year duration
- ⚠Corporate component adds credit risk beyond pure Treasury exposure
- ⚠Lower yield than high-yield or long-duration alternatives
- ⚠Inflation risk for the nominal Treasury component
Similar ETFs
Frequently Asked Questions
What makes BIV different from VCIT?
BIV covers both government and corporate bonds in the 5–10 year range, while VCIT holds only corporate bonds. BIV has lower credit risk due to its Treasury/government component; VCIT has higher yield. Both charge very low fees. This is educational content, not financial advice.
What is BIV's typical yield?
BIV's yield tracks intermediate Treasury and investment-grade corporate rates, falling between the lower yields of BSV and the higher yields of BLV. Current yields are available at Vanguard.com. This is educational content, not financial advice.
Is BIV a good 60/40 bond component?
Yes, BIV is commonly used as the bond side of a balanced portfolio. Its blend of government and corporate bonds provides diversified exposure at a very low 0.04% expense ratio. This is educational content, not financial advice.
Does BIV pay dividends?
Yes, BIV distributes monthly interest income from its bond holdings. Distributions reflect the coupon income from Treasuries, agency bonds, and corporate bonds in the portfolio. This is educational content, not financial advice.
How did BIV perform during 2022's rate hikes?
Like most bond ETFs, BIV declined significantly in 2022 as the Fed raised rates aggressively. Its ~6 year duration meant approximately a 10–12% price decline. It has since partially recovered as rate hike expectations stabilized. This is educational content, not financial advice.
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