Vanguard Intermediate-Term Bond ETF

Vanguard Intermediate-Term Bond ETF (BIV) tracks the Bloomberg U.S. 5-10 Year Government/Credit Float Adjusted Index: US government bonds plus investment-grade (higher-rated) corporate and foreign dollar bonds maturing in five to 10 years. As of June 30, 2026, about 55% was in Treasuries and 40% in company bonds. Its 0.03% annual expense ratio matches the cheapest similar funds, and it pays monthly income, though rising interest rates hit it harder than short-term bond funds.

• Over the year to Nov 2, 2026, BIV returned -0.7%, 7th of 8 among similar funds.
• Its 5-year annualized return was 0.0% and its 10-year +1.7%.
• In the 2020 COVID crash it fell 9.2% and regained its old high 2.1 months after the low.
• Its worst full calendar year was 2022 (-13.2%); its best was 2011 (+11.1%).
• The deepest fall in its price history was 19% (Aug 6, 2020 to Oct 20, 2022), recovered by Feb 13, 2026.

As of Jun 30, 2026, the fund held 2,355 securities; the ten largest made up 20.87% of assets.

The bonds mature in 7.5 years on average (weighted by size), with an average coupon of 4.27%.

• Over the three months to Jun 30, 2026, investors added a net $997.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.20%, +0.16%, +0.17%.

BIV is the exchange-traded share class of Vanguard Intermediate-Term Bond Index Fund. It aims to track the Bloomberg U.S. 5-10 Year Government/Credit Float Adjusted Index: publicly issued US government bonds, plus investment-grade (higher-rated) corporate and international bonds priced in US dollars, all maturing in five to 10 years. The index is market-weighted, so borrowers with the most debt outstanding count most. As of June 30, 2026, Treasuries made up about 55% of the fund, and each of its 10 largest positions was a Treasury note of about 2%.

Rather than holding every index bond, the fund uses sampling: it holds a selection that together matches the index's key risk traits, including its average maturity, which was 7.21 years as of December 31, 2025. It normally keeps at least 80% of net assets in index bonds. As of June 30, 2026, it held about 2,355 securities with an average maturity of 7.5 years. Bonds that drop below five years to maturity leave the index, so holdings change steadily. Portfolio turnover, roughly the share of holdings replaced in a year, was 55%.

Shares trade on NYSE Arca at market prices, which can differ slightly from the value of its bonds. Derivatives play almost no role: a single credit-derivative position was about 0.01% of assets as of June 30, 2026.

• BIV charges 0.03% a year, versus an average of 0.05% for the similar funds below (1st of 8, cheapest first).
• Of that, 0.02% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $3 in the first year and $39 over 10 years (assuming a 5% annual return).

A broad, very low-cost mix of US Treasuries and investment-grade corporate bonds, it could serve as the main bond portion that balances stocks.

BIV held up relatively well in the 2008 and 2020 stock crashes, but not in 2022. From the October 2007 market peak to the March 2009 low it gained 6.7%, despite a 13.6% drop in fall 2008 that it recovered by December. In the 2020 crash it lost 2.2% and recovered a 9.2% dip in about two months. In 2022 it fell along with stocks, losing 13.3%, its worst calendar year. Its deepest drop, 19% from August 2020 to October 2022, took nearly 40 months to recover, until February 2026. Cashing out shares for spending in 2022 meant locking in losses.

BIV pays income monthly. Its trailing 12-month yield was 4.45% as of October 27, 2026. Costs are low: 0.03% a year, or $39 over 10 years on $10,000 in the SEC's standard example. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).