Vanguard today launched the first U.S.-based ETF that covers the global investment-grade bond universe in one fund.
The Vanguard Total World Bond ETF (BNDW), is a fund of funds, investing in two Vanguard ETFs: the Vanguard Total Bond Market ETF (BND), which holds primarily U.S. investment-grade bonds, both corporate and government; and the Vanguard International Bond ETF (BNDX), which invests in foreign investment-grade bonds, also government and corporate.
(Related: Vanguard Wants to Span the Globe With Its Next Bond ETF)
The new global bond ETF has an estimated expense ratio of 0.09% and tracks the Bloomberg Barclays Global Aggregate Float Adjusted Composite Index, which is down 2% year to date. Its structure is similar to Vanguard’s Total Corporate Bond ETF (VTC), which invests in Vanguard’s short-, intermediate- and long-term corporate bond ETFs.