Fund Evaluator:
BlackRock Diversified Fixed Income (BDVFX)
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Best Performing in Intermediate Core-Plus Bond Over the Last Year
| 3.0% | Weitz Core Plus Income Investor (WCPNX) |
| 2.9% | Diamond Hill Core Plus Bond Y (DHNYX) |
| 2.8% | Diamond Hill Core Plus Bond I (DHNIX) |
| 2.8% | Performance Trust Total Return Bd Inst (PTIAX) |
| 2.8% | Nuveen Core Plus Bond I (TCBHX) |
Fund Details
BlackRock Diversified Fixed Income Overview
BlackRock Diversified Fixed Income (BDVFX) is an actively managed Taxable Bond Intermediate Core-Plus Bond fund. BlackRock launched the fund in 2023.
The investment seeks to provide a combination of income and capital growth. The fund invests, under normal circumstances, at least 80% of the value of its net assets, plus the amount of any borrowings for investment purposes, in fixed income instruments. The fund seeks to invest a substantial portion (generally, at least 60% at notional value) of its assets in U.S. registered, dollar-denominated bonds or derivatives with similar economic characteristics. It may invest in bonds issued by companies located in countries other than the United States, including companies in emerging markets.
About BlackRock Diversified Fixed Income (BDVFX)
There are 4 members of the management team with an average tenure of 3.34 years: Philip Green (2023), Michael Pensky (2023), Thomas Becker (2024), Daniel Felder (2023). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg US Agg Bond TR USD index with a weighting of 100%. BlackRock Diversified Fixed Income has 5112 securities in its portfolio. The top 10 holdings constitute 37.9% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
BlackRock Diversified Fixed Income is part of the Fixed Income global asset class and is within the Taxable Bond fund group. BlackRock Diversified Fixed Income has 0.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 5.4%. There is 1.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 114.7% (115.3% domestic bond, -0.5% foreign bond and 0.0% convertible bond). BlackRock Diversified Fixed Income has -25.0% of the portfolio in cash.
Assets Under Management
The fund has $581 million in total assets, which is below the $1 billion average for the Intermediate Core-Plus Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
BDVFX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The BlackRock Diversified Fixed Income expense ratio is low compared to funds in the Intermediate Core-Plus Bond category. BlackRock Diversified Fixed Income has an expense ratio of 0.16%, which is 79% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. BlackRock Diversified Fixed Income has a portfolio turnover rate of 567%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 169% for the Intermediate Core-Plus Bond category.
Recently, in the month of August 2026, BlackRock Diversified Fixed Income returned 0.5%, which earned it a grade of A, as the Intermediate Core-Plus Bond category had an average return of 0.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
BlackRock Diversified Fixed Income has a trailing yield of 4.91%, which is above the 4.34% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
BlackRock Diversified Fixed Income Grades
Year to date, the fund has returned 0.1%, 0.3 percentage points better than the category, which translates into a grade of B. The fund has returned 2.1% over the past year (grade of B) and 4.4% over the past three years (grade of C).
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BDVFX Trailing NAV Total Returns Data as of 8/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| BDVFX Return (NAV) | 0.5% | -0.6% | 2.1% | 4.4% | na | na |
| BDVFX Grade | A | B | B | C | na | na |
| +/- Category | 0.1% | 0.1% | 0.3% | -0.1% | na | na |
| Intermediate Core-Plus Bond Avg | 0.4% | -0.7% | 1.9% | 4.5% | -0.1% | 1.8% |
| BDVFX Tax Cost Ratio | na | na | 2.2% | 2.3% | na | na |
BDVFX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| BDVFX Return (NAV) | 0.1% | 7.5% | 1.8% | na | na | na | na | na | na | na | na |
| BDVFX Grade | B | C | D | na | na | na | na | na | na | na | na |
| +/- Category | 0.3% | 0.1% | -0.5% | na | na | na | na | na | na | na | na |
| Intermediate Core-Plus Bond Avg | -0.2% | 7.3% | 2.3% | 6.1% | -13.4% | -0.6% | 8.6% | 9.1% | -0.9% | 4.5% | 4.4% |
| Risk Measures | |
| Standard Deviation: | 5.6% |
| Total Risk Index: | 0.46 - Low |
| Category Risk Index: | 1.00 - Below Average |
| Category Risk Grade: | B (38% Rank) |
| Beta: | 0.99 |
| R-Squared: | 99% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Value |
| Bond Investment Style: | na Moderate Sensitivity |
| Yield: | 4.9% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1270 Mil |
| Fund Total Assets: | $ 581 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 567% |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 3.6 years | |||
| Average Tenure: 3.3 years | |||
| Managers (Year): Green Philip (2023), Pensky Michael (2023), Felder Daniel (2023), Becker Thomas (2024) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 5112 |
| % in Top 10 Holdings: | 37.9% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.5% |
Portfolio Allocation |
|
| Domestic Stock: | 5.4% |
| Foreign Stock: | 1.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 115.3% |
| Foreign Bond: | -0.5% |
| Convertible Bond: | 0.0% |
| Other: | 3.9% |
| Cash: | -25.0% |
Purchase Information
| Fund Family: | BlackRock |
| Phone Number: | 800-441-7762 |
| Website: | www.blackrock.com |
| Status: | Open |
| Inception Date: | January 18, 2023 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.16% ( Rating : Low ) |
| Category Average Expense Ratio (%): | 0.78% |
| Share Class: | BlackRock Diversified Fixed Income |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
