With neither the Bank of Japan nor the European Central Bank doing anything but signaling they will keep interest rates low and work to suppress the yen and euro, BNDX’s utility increases. [The Right Time for Currency Hedged ETFs]
BNDX has an average duration of seven years and charges 0.2% per year, making it less expensive than 81% of comparable funds, according to Vanguard. S&P Capital IQ rates BNDX marketweight.
Investors have clearly warmed to the idea that currency hedging can be useful with asset classes beyond equities. It took BNDX just six months of trading to amass $760 million in assets under management and that number swelled to $1.7 billion as of the end of August.
Vanguard Total International Bond ETF
Tom Lydon’s clients own shares of BNDX.