Vanguard Will Introduce a Total World Bond ETF

BNDX, which tracks the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index, holds nearly 4,900 bonds and has an average duration of 7.9 years. That ETF is currency hedged.

“Vanguard research shows that currency-hedged global bond exposure provides diversification benefits that can reduce volatility and smooth returns over time,” said the issuer. “Two of the most important drivers of bond returns are interest rates and inflation, factors that fluctuate in other countries in patterns that have not historically been correlated with the United States or one another.”

The Total World Bond ETF will charge 0.09% per year, or $9 on a $10,000 investment.

For more information on the fixed-income market, visit our bond ETFs category.