Vanguard Interm-Term Bond ETF (BIV)
BIV Price and Sentiment
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Intermediate bonds can give fixed income investors a middle ground for long and short duration via an all-encompassing asset like the Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV). BIV seeks to track the performance of the Bloomberg Barclays U.S. 5-10 Year Government/Credit Float Adjusted Index.
Intermediate bond funds and ETFs have long been popular choices with investors who follow an index fund approach to investing. BIV, one of the most popular had a 9.7% annual return last year, but this came at the cost of once-in-a-lifetime low yields.
BIV invests in investment-grade bonds worldwide that have maturities between 5 and 10 years. Short enough to minimize interest rate risk without sacrificing too much yield. Default risk is minimal too. Many investors are again looking at higher quality bonds for a better risk-return trade-off as the High-Yield Bond Index recently went below a 4% yield, a record low.
A property diversified bond portfolio has a range of holdings, as no single type of bond (or bond fund) can do it all.
Looking for a few safe bond funds to park your cash in?