BIV's long duration and low credit spreads make it sensitive to rising rates and macro risks, especially with current geopolitical tensions. Short-term rates may stay higher than expected due to higher oil prices that could be sustained by conflict in the Middle East. Long-term risks include US isolationist policies threatening the dollar's reserve status, which could worsen funding conditions and hurt US debt. Markets are clearly thinking about this.
With a steepening yield curve and rate cut expectations looming, the environment for the bond market can be a tricky one to navigate. That said, here are three bond funds from Vanguard to consider.
If you're retired and trying to keep your life as simple as possible, consider a foundational investment in these two income ETFs.
![]() BIV 3 months ago | Other | $0.23 Per Share |
![]() BIV 4 months ago Paid | Monthly | $0.25 Per Share |
![]() BIV 5 months ago Paid | Monthly | $0.25 Per Share |
![]() BIV 6 months ago Paid | Monthly | $0.24 Per Share |
![]() BIV 7 months ago Paid | Monthly | $0.25 Per Share |
![]() BIV 3 months ago | Other | $0.23 Per Share |
![]() BIV 4 months ago Paid | Monthly | $0.25 Per Share |
![]() BIV 5 months ago Paid | Monthly | $0.25 Per Share |
![]() BIV 6 months ago Paid | Monthly | $0.24 Per Share |
![]() BIV 7 months ago Paid | Monthly | $0.25 Per Share |
ARCA Exchange | US Country |
This index encompasses a diversified portfolio of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds. Specifically targeting bonds with maturities ranging from 5 to 10 years, it offers investors a structured approach to medium-term fixed income investment. The strategy behind the fund is meticulously designed to ensure a broad representation of the medium-term bond market. By employing a sampling process, it selects investments that closely replicate the performance and risk characteristics of the full index while ensuring liquidity and efficient management. The commitment to invest at least 80% of assets in bonds that are constituents of the index underscores a disciplined investment philosophy and focus on alignment with the index's objectives.
The index offers distinct investment solutions through its carefully curated selection of bonds, leveraging a comprehensive sampling process to achieve its objectives. The following are the main investment vehicles within its portfolio: