“Vanguard is pleased to bring its international fixed income indexing expertise and low-cost approach to U.S. investors,” Vanguard CEO Bill McNabb said in the press release. “International bonds can serve as an important diversifier, especially for U.S. investors who currently have modest exposure to the asset class.”
McNabb pointed out that Vanguard research found allocations to hedged international bonds helps broaden and diminish risk in a diversified portfolio.
Vanguard suggests 20% of a bond portion in a U.S investor’s portfolio can be used to allocate toward hedged international bonds.
For more information on fixed-income assets, visit our bond ETFs.
Max Chen contributed to this article.