Vanguard Intermediate-Term Bond ETF (BIV): Complete Beginner's Guide
Last updated: March 2026 • Vanguard • Intermediate-Term Bond
Expense Ratio
0.04%
AUM
$18.0B
Dividend Yield
3.60%
Inception
2007
Beginner Score
10/10
What is Vanguard Intermediate-Term Bond ETF?
BIV holds a broad portfolio of U.S. investment-grade bonds with maturities ranging from five to ten years, sitting in the middle ground between short-term and long-term bond funds. It offers a moderate level of income while keeping interest rate risk manageable. Beginners often use BIV as a balanced fixed-income holding in a diversified portfolio.
BIV is managed by Vanguard and has been available since 2007. With $18.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.04%, which means for every $10,000 you invest, you pay approximately $4 per year in management fees.
BIV at a Glance — Key Metrics
| Expense Ratio | 0.04% |
| Total Holdings | 2,200 |
| P/E Ratio | N/A |
| Beta | 0.15 |
| Dividend Yield | 3.60% |
| AUM | $18.0B |
| Inception Year | 2007 |
| Issuer | Vanguard |
Top 10 Holdings in BIV
BIV holds 2,200 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury 4.0% 2031 | GOVT | 3.20% |
| 2 | U.S. Treasury 3.875% 2033 | GOVT | 2.80% |
| 3 | U.S. Treasury 4.25% 2030 | GOVT | 2.60% |
| 4 | U.S. Treasury 3.5% 2032 | GOVT | 2.40% |
| 5 | U.S. Treasury 4.5% 2029 | GOVT | 2.00% |
| 6 | Fannie Mae 4.0% MBS | FNMA | 1.80% |
| 7 | Federal Home Loan Bank 3.75% | FHLB | 1.50% |
| 8 | Apple Inc. 3.85% 2033 | AAPL | 1.20% |
| 9 | Microsoft Corp. 3.45% 2031 | MSFT | 1.00% |
| 10 | Verizon Communications 4.125% | VZ | 0.90% |
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BIV Performance History
Here's how BIV has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
0.90%
1 Year
4.20%
3 Year
1.50%
5 Year
1.40%
10 Year
2.50%
Beginner Suitability Score: 10/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
BIV scores 10/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 2,200 holdings, and has been available since 2007, giving it a proven track record.
How to Buy BIV — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "BIV" — Use the search bar in your brokerage platform to find Vanguard Intermediate-Term Bond ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into BIV
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With BIV's expense ratio of 0.04%, a $10,000 investment would lose approximately $344 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
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Pros and Cons of BIV
Pros
- ✓Balanced approach to fixed-income investing with moderate duration risk
- ✓Higher yield than short-term bond funds while limiting long-term rate exposure
- ✓Extremely low expense ratio of 0.04% makes it one of the cheapest bond ETFs
- ✓Broad diversification across over 2,000 investment-grade bonds
Cons
- ✗More sensitive to interest rate movements than short-term bond funds
- ✗Can experience noticeable price declines when rates rise sharply
- ✗Lower returns compared to stock-based ETFs over long time horizons
BIV vs Similar ETFs
See how BIV stacks up against similar funds:
Frequently Asked Questions
Is BIV a good ETF for beginners?▾
BIV has a Beginner Suitability Score of 10/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of BIV?▾
BIV has an expense ratio of 0.04%. This means for every $10,000 you invest, you pay approximately $4 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in BIV?▾
You can invest in BIV with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does BIV pay dividends?▾
Yes, BIV pays dividends with a current yield of approximately 3.60%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in BIV?▾
The top holdings in BIV include U.S. Treasury 4.0% 2031 (3.20%), U.S. Treasury 3.875% 2033 (2.80%), U.S. Treasury 4.25% 2030 (2.60%), and more. The fund holds 2,200 total positions, providing broad diversification across many companies.