Core Insights - The bond market is anticipating rate cuts following a recent 25 basis points drop, suggesting that investors may benefit from reallocating to intermediate bonds for higher income potential [1][2][4]. Interest Rate Environment - Current forecasts indicate a greater than 90% probability of imminent rate cuts, influenced by short-term events such as a potential government shutdown [2][3]. - The expectation of rate cuts is likely to exert downward pressure on yields, creating opportunities for investors to shift their bond portfolios towards intermediate exposure [4]. Investment Options - Vanguard offers several options for investors looking to gain exposure in the intermediate segment of the yield curve: - The Vanguard Intermediate-Term Bond ETF (BIV) tracks investment-grade bonds with maturities of five to ten years [5]. - The Vanguard Intermediate-Term Treasury ETF (VGIT) focuses on U.S. Treasury notes within the same maturity range, appealing to risk-averse investors [6]. - The Vanguard Intermediate-Term Corporate Bond ETF (VCIT) targets high-quality corporate bonds with similar maturities, suitable for those seeking higher yields and willing to accept more credit risk [7]. Cost Efficiency - All three Vanguard funds mentioned have a low expense ratio of 5 basis points, equating to $5 per every $10,000 invested, making them cost-effective options for investors [8].