“BNDX, which holds nearly 4,160 bonds, has an average duration of almost eight years, but this is an international ETF chock full of countries with monetary policies that are diverging from that of the Fed. For example, Japan, France and Germany combine for about 43% of BNDX’s weight and there is essentially no chance Japan or the Eurozone will raise interest rates anytime soon,” reports InvestorPlace.
BNDX features a deep lineup and provides broad exposure to international debt, including foreign investment-grade government, corporate and securitized debt while hedging currency exposure, which can diminish volatility attributed to the forex risks.
“BNDX is also a play on dollar strength because this international ETF is also currency hedged. Credit quality is not a concern with BNDX as about 80% of its holdings are rated AAA, AA or A,” notes InvestorPlace.
For more information on the fixed-income market, visit our bond ETFs category.