When building an investment portfolio, investors should be diversified. An investor can meticulously pick out individual securities to fill out their fixed-income and equity portfolios. Alternatively, an investor could choose a few ETFs to gain exposure to hundreds if not thousands of securities.
BIV, which is home to bonds of high credit quality “is showing a yield to maturity of 2.7% and an average duration of 6.5 years. The yields are not high, but the duration is also not very long. All around, so far this seems fairly reasonable. If an investor wanted to use a single ETF for a large portion of their bond portfolio, this would be an option that could get it done without generating excessive amounts of risk,” according to a recent Seeking Alpha post.
Nearly all of the ETF’s holdings have maturities ranging from five years to 10 years.
Vanguard Intermediate-term Bond ETF
