However, as mentioned, BNDX still adds EM bond exposure, but limits that to about 7% in its portfolio composition. Bond markets in Europe and the Pacific dominate the rest of the fund. That mitigates credit risk.
Per its fund description, BNDX seeks to track the performance of the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index. Its portfolio is primarily investment-grade debt, so credit risk is minimized. Furthermore, the fund’s 30-day SEC yield is 3.25% also as of July 1. Furthermore, it carries a low expense ratio of 0.07%.
For more news, information, and analysis, visit the Fixed Income Channel.
