 Vanguard
Total International Bond ETF (BNDX) is an exchange-traded fund that
tracks the performance of the Bloomberg Barclays Global Aggregate
ex-USD Float Adjusted RIC Capped Index, which is a broad-based index
that measures the performance of investment-grade, non-U.S.
dollar-denominated fixed-income securities.
BNDX is designed to
provide investors with exposure to the global bond market, including
government, corporate, and securitized debt issued by issuers in
developed and emerging markets outside of the United States. The fund
invests in bonds denominated in a variety of currencies, including the
euro, Japanese yen, British pound, Canadian dollar, and Australian
dollar.
The ETF has a low expense ratio of 0.09%, making it a
cost-effective way for investors to gain exposure to international
fixed income markets. BNDX has a duration of approximately 7 years and
a yield to maturity of around 0.5%, as of March 2023.
Investors
who are looking to diversify their fixed-income portfolio beyond the
U.S. bond market may consider adding BNDX to their portfolio. However,
it is important to note that international bond markets can be
volatile and may be affected by factors such as currency exchange
rates, interest rate fluctuations, and economic and political
developments in foreign countries. As with any investment, it is
important to conduct thorough research and consult with a financial
advisor before making any investment decisions.
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