BIV — Vanguard Intermediate-Term Bond ETF
Vanguard · Expense Ratio: 0.04% · US Bonds · roughly average for its US Bonds category
Key Facts
| Ticker | BIV |
| Full Name | Vanguard Intermediate-Term Bond ETF |
| Provider | Vanguard |
| Expense Ratio | 0.04% |
| Category | US Bonds |
| Assets Under Management | $20B |
| Inception Year | 2007 (19 years ago) |
| Number of Holdings | 3,200 |
| Dividend Yield | ~3.8% (high) |
| Top Holdings | US Treasuries, Corp Bonds, MBS |
What Is BIV?
BIV, managed by Vanguard, launched in 2007, is a major ETF with deep liquidity and tight bid-ask spreads in the US Bonds category. US bond market ETF providing fixed income exposure to government and corporate bonds. With $20B in assets under management, it benefits from deep institutional liquidity and tight bid-ask spreads.
BIV in a FIRE Portfolio
Bonds and inflation-protected securities act as portfolio ballast — reducing volatility and providing stability during the distribution phase for FIRE investors.
Bonds stabilize your portfolio during stock market crashes. In a FIRE portfolio, a common allocation is 101% stocks / -1% bonds (the "101 minus your age" rule). Bond funds like BIV provide the fixed-income portion of this allocation.
Cost Analysis: How BIV's 0.04% Fee Affects Your FIRE Timeline
At 0.04%, BIV is in the ultra-low-cost tier. On a $100,000 investment, you pay just $40/year in fees. Over 30 years, the fee drag is approximately less than 1% of your total returns — essentially negligible for FIRE planning. This is about as close to "free" as ETFs get.
Dividend Income Potential
With a high dividend yield of approximately 3.8%, here's what BIV could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $3,800/year | $317/month |
| $250,000 | $9,500/year | $792/month |
| $500,000 | $19,000/year | $1,583/month |
| $1,000,000 | $38,000/year | $3,167/month |
Frequently Asked Questions About BIV
What is the expense ratio for BIV?
BIV has an expense ratio of 0.04%. This is ultra-low-cost — on a $100K portfolio, annual fees are $40. Roughly average for its us bonds category.
Is BIV good for a FIRE portfolio?
Bonds and inflation-protected securities act as portfolio ballast — reducing volatility and providing stability during the distribution phase for FIRE investors. Its 0.04% expense ratio is ultra-low-cost for the US Bonds category.
How does the 0.04% fee affect long-term returns?
At 0.04%, the fee impact is minimal — less than $50/year on a $100K portfolio. Over a 30-year FIRE timeline, the cumulative fee drag is under 1% of total returns, making BIV an extremely efficient choice.
Similar ETFs in US Bonds
- BND — Vanguard Total Bond Market ETF (0.03% · Portfolio Hedge)
- AGG — iShares Core US Aggregate Bond ETF (0.03% · Portfolio Hedge)
- BNDX — Vanguard Total International Bond ETF (0.07% · Portfolio Hedge)
- BSV — Vanguard Short-Term Bond ETF (0.04% · Portfolio Hedge)
- VCIT — Vanguard Intermediate-Term Corporate Bond ETF (0.04% · Portfolio Hedge)
- VCSH — Vanguard Short-Term Corporate Bond ETF (0.04% · Portfolio Hedge)
- MUB — iShares National Muni Bond ETF (0.05% · Portfolio Hedge)
- VTEB — Vanguard Tax-Exempt Bond ETF (0.05% · Portfolio Hedge)
- SHY — iShares 1-3 Year Treasury Bond ETF (0.15% · Portfolio Hedge)
- IEI — iShares 3-7 Year Treasury Bond ETF (0.15% · Portfolio Hedge)
- TLT — iShares 20+ Year Treasury Bond ETF (0.15% · Portfolio Hedge)
- GOVT — iShares US Treasury Bond ETF (0.05% · Portfolio Hedge)