BIV Profile
BIV
(Intermediate-Term Bond ETF Vanguard) is an exchange-traded fund (ETF)
managed by Vanguard Group. The ETF seeks to track the performance of
the Bloomberg Barclays U.S. 5-10 Year Government/Credit Float Adjusted
Index, which is a benchmark that tracks the performance of
investment-grade bonds with maturities between 5 and 10 years.
As a fixed income ETF, BIV invests primarily in a diversified
portfolio of investment-grade bonds issued by the U.S. government,
corporations, and other entities. The ETF aims to provide investors
with exposure to the intermediate-term fixed income market, which can
provide a stable source of income and help diversify a portfolio.
As of September 2021, the BIV ETF had total net assets of around
$31 billion and was invested in a diversified portfolio of
investment-grade bonds with maturities between 5 and 10 years. The
fund's holdings are typically rolled over on a regular basis, with new
bonds being purchased as old ones mature.
In terms of
performance, BIV has delivered consistent returns over the long term,
with a relatively low level of volatility. The ETF's focus on
intermediate-term investment-grade bonds means that it is relatively
sensitive to changes in interest rates, which can make it a suitable
option for investors who are seeking a low-risk investment option with
some potential for capital appreciation.
Investors should keep
in mind that like all investments, BIV carries risks, including the
risk that interest rates may rise, which can result in a decline in
the value of the ETF's holdings. Additionally, the ETF charges a
relatively low expense ratio of 0.05%, which is lower than the average
expense ratio for fixed i
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