What Is BIV? Vanguard Intermediate-Term Bond Index Fund
Last updated September 2026
Short answer
BIV is Vanguard Intermediate-Term Bond Index Fund, an ETF that tracks an index of intermediate-maturity US government and investment-grade corporate bonds at a 0.03% expense ratio. BIV holds a mix of US Treasuries, investment-grade corporate debt and dollar-denominated international issues, all in the medium-maturity range. Its 4.20% distribution sits below a corporate-only fund like VCIT at 4.78%, and that gap is the entire point: you are giving up yield in exchange for the government portion, which does not default. Whether that trade is right depends on whether you want your bonds to be ballast or to be an income engine.
BIV is issued by Vanguard and tracks an index of intermediate-maturity US government and investment-grade corporate bonds. It charges a 0.03% expense ratio, holds approximately $52.5B in assets under management, yields about 4.20%, and launched in 2007.
Why BIV yields less than a corporate bond fund
Because a meaningful slice of it is government debt. Treasuries pay less than corporate bonds precisely because the US government issuing its own currency does not default in the way a company can. Blending them in lowers the headline yield and lowers the credit risk at the same time.
The comparison worth holding in mind is VCIT at 4.78% against BIV at 4.20%. That roughly half-point difference is what the market currently charges for taking corporate credit risk at this maturity. Neither number is better; they price different things.
What actually moves BIV
Interest rates, mostly. At intermediate maturity the fund is genuinely rate-sensitive: when rates rise, the fixed payments on bonds already held become less attractive and their prices fall. The fund can lose value in a year where not a single issuer misses a payment, which is the thing most people find counterintuitive about bond funds.
The government portion also means BIV tends to behave defensively when equity markets fall, since investors moving to safety usually buy Treasuries. A corporate-only fund gives you less of that effect, because credit spreads widen at exactly the moment stocks are falling.
BIV holdings: top 10
Approximate weights as of August 2026. Each ticker links to its individual stock guide in Walnut.
| Rank | Ticker | Company | % of BIV |
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How do I invest in BIV?
There are three common ways to get BIV exposure. Buy shares (or fractional shares) of BIV directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so BIV sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. BIV trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is BIV a good buy?
Whether BIV is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks an index of intermediate-maturity US government and investment-grade corporate bonds, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is BIV a buy?
The bottom line on BIV
BIV gives you an index of intermediate-maturity US government and investment-grade corporate bonds exposure in one ticker at a 0.03% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.
More on BIV
Whether BIV is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is BIV a buy?
BIV yields 4.20% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see BIV dividend: yield and schedule.
New to funds like BIV? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how BIV fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in BIV with AI
Connect the broker you already use and ask Walnut's AI how BIV fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is BIV?
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BIV is the Vanguard Intermediate-Term Bond ETF. It holds US government, investment-grade corporate and dollar-denominated international bonds in the medium-maturity range. It charges 0.03%, holds about $52.5B, distributes roughly 4.20%, and launched in 2007.
Why does BIV yield less than VCIT?
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Because part of it is government debt. VCIT holds only investment-grade corporates and distributes about 4.78%; BIV blends in Treasuries and distributes about 4.20%. That gap is what the market pays for taking corporate credit risk. Lower yield here buys lower credit risk, not worse value.
Can BIV lose money?
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Yes, and usually through rates rather than defaults. At intermediate maturity, a rise in rates makes the fixed payments on bonds already held less attractive, so prices fall. The fund can post a negative year with every issuer paying on time.
Is BIV a good core bond holding?
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It is built for that role: broad, cheap at 0.03%, blended between government and corporate credit, and at a maturity that captures most of the yield curve's usable range without extreme rate sensitivity. Whether it is the right core depends on how much duration you want.
BIV vs BND: what is the difference?
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BND is the total US bond market, spanning short through long maturities. BIV concentrates on the intermediate section. BND is the simpler one-fund answer; BIV is the choice if you specifically want to avoid long-dated bonds and their heavier rate sensitivity.
Does BIV protect me when stocks fall?
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Partly, and more than a corporate-only fund would. The government portion tends to attract buyers when investors move to safety. Corporate holdings do less of that, because credit spreads typically widen just as equities are falling. It is a cushion, not a hedge.
How often does BIV pay?
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Monthly, which is standard for bond funds because the interest they collect arrives on a rolling basis. The amount moves with prevailing rates and portfolio turnover rather than being fixed.
How is BIV taxed?
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Distributions are interest income, generally taxed at ordinary rates rather than the lower qualified-dividend rates. The Treasury portion of the interest is typically exempt from state and local tax. That mixed treatment is one reason bond funds are often held inside tax-advantaged accounts. This is not tax advice.
What is BIV's expense ratio?
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BIV has an expense ratio of 0.03% per year as of August 2026, charged by Vanguard and deducted from the fund's value rather than billed to you separately. On a $10,000 position that is roughly $3 a year. Fees compound over time, so on a long-term holding the expense ratio is one of the few return drivers you control. It is worth comparing against other funds that track an index of intermediate-maturity US government and investment-grade corporate bonds before you choose.
How do I compare BIV to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. BIV's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to August 2026; verify current figures against Vanguard's fund page or your broker before investing.