A Simple ETF to Access the Global Investment-Grade Bond Universe

Vanguard has rounded out its global fixed-income ETF suite with a new low-cost world bond ETF of ETFs that combines the global investment-grade universe.

On Thursday, Vanguard launched the Vanguard Total World Bond ETF (NasdaqGM: BNDW), which has a 0.09% expense ratio.

The Vanguard Total World Bond ETF tries to reflect the performance of the Bloomberg Barclays Global Aggregate Float Adjusted Composite Index, which is comprised of investment-grade U.S. bonds and investment-grade non-U.S. dollar-denominated bonds taken from the Bloomberg Barclays U.S. Aggregate Float Adjusted Index and the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged), according to the fund’s prospectus.

BNDW acts as an ETF of ETFs and will obtain its exposure by investing in two Vanguard bond ETFs, the Vanguard Total Bond Market ETF (NasdaqGM: BND) and Vanguard Total International Bond ETF (NasdaqGM: BNDX).