Average Daily Volume
3.86M
Fund Overview
The Vanguard Total International Bond ETF (BNDX) is designed to provide investors with broad exposure to investment-grade bonds issued outside the United States. The fund seeks to track the performance of the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index, which includes government, government-related, corporate, and securitized bonds from both developed and emerging markets. BNDX offers diversification benefits by investing in non-U.S. bonds, which can help reduce portfolio volatility and provide income potential. The fund is passively managed, with a low expense ratio, making it an attractive option for cost-conscious investors seeking international fixed-income exposure.
- Asset Class
-
Bond
- Industry
-
Corporate Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 3.17 %
- Currency Hedged
-
No
- Portfolio Turnover
-
26 %
- Dividend Date
-
Why Invest in the BNDX ETF?
Potential Benefits
- Provides diversified exposure to international investment-grade bonds, reducing reliance on U.S. fixed-income markets.
- Low expense ratio compared to actively managed international bond funds, enhancing net returns.
- Offers potential for higher yields compared to U.S. bonds, depending on global interest rate environments.
- Currency hedging strategy helps mitigate the impact of foreign exchange fluctuations on returns.
- Passive management approach ensures consistent performance relative to the benchmark index.
Potential Risks
- Interest rate risk: Rising global interest rates could negatively impact bond prices.
- Credit risk: Exposure to bonds from various countries and issuers may include default risks.
- Currency risk: While hedged, residual currency exposure could affect returns.
- Political and economic instability in foreign markets may impact bond performance.
- Lower liquidity compared to U.S. bond markets could affect trading efficiency in volatile conditions.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.5%
|
+1.5%
|
-2.1%
|
+0.2%
|
+0.8%
|
+0.4%
|
-1.1%
|
-0.2%
|
-1.2%
|
+0.2%
|
-
|
-
|
| 2025 |
+0.2%
|
+0.9%
|
-1.2%
|
+1.7%
|
0.0%
|
+0.3%
|
-0.1%
|
+0.1%
|
+0.5%
|
+1.0%
|
-0.2%
|
-0.5%
|
| 2024 |
-0.6%
|
-0.5%
|
+1.1%
|
-1.4%
|
+0.3%
|
+0.6%
|
+2.1%
|
+0.5%
|
+1.3%
|
-0.7%
|
+1.7%
|
-0.8%
|
| 2023 |
+2.4%
|
-1.5%
|
+2.6%
|
+0.2%
|
+0.1%
|
0.0%
|
-0.1%
|
+0.2%
|
-1.7%
|
-0.1%
|
+3.4%
|
+3.2%
|
| 2022 |
-1.4%
|
-1.3%
|
-2.2%
|
-3.0%
|
-0.7%
|
-1.7%
|
+3.2%
|
-3.6%
|
-2.9%
|
+0.5%
|
+2.4%
|
-2.7%
|
| 2021 |
-0.6%
|
-1.7%
|
0.0%
|
-0.2%
|
0.0%
|
+0.4%
|
+1.5%
|
-0.4%
|
-1.1%
|
-0.4%
|
+1.1%
|
-0.7%
|
| 2020 |
+1.9%
|
+0.7%
|
-2.9%
|
+1.9%
|
+0.4%
|
+0.5%
|
+0.9%
|
-0.8%
|
+0.8%
|
+0.4%
|
+0.4%
|
+0.4%
|
| 2019 |
+1.0%
|
+0.2%
|
+1.8%
|
+0.2%
|
+1.3%
|
+1.6%
|
+1.2%
|
+2.1%
|
-0.4%
|
-0.5%
|
-0.5%
|
-0.3%
|
| 2018 |
-0.6%
|
+0.3%
|
+1.2%
|
-0.1%
|
-0.2%
|
+0.6%
|
+0.1%
|
+0.1%
|
-0.2%
|
+0.1%
|
+0.5%
|
+1.2%
|
| 2017 |
-1.0%
|
+0.9%
|
0.0%
|
+0.5%
|
+0.7%
|
-0.5%
|
+0.2%
|
+0.9%
|
-0.4%
|
+0.6%
|
+0.2%
|
+0.3%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: BNDX vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
BNDX tracks the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index, which includes investment-grade bonds from both developed and emerging markets outside the United States. The index is market-cap weighted, with caps to ensure diversification. The fund employs currency hedging to mitigate exchange rate fluctuations between the bonds' local currencies and the U.S. dollar. BNDX primarily holds government and high-quality corporate bonds, with an average maturity typically between 5-10 years. The fund is rebalanced monthly to maintain alignment with its benchmark index.
Frequently Asked Questions
Does BNDX hedge currency risk?
Yes, BNDX employs currency hedging to mitigate the impact of exchange rate fluctuations between foreign currencies and the U.S. dollar on its returns.
What percentage of BNDX is invested in emerging markets?
As of the latest holdings, approximately 10-15% of BNDX is invested in emerging markets, with the majority in developed markets outside the U.S.
How often does BNDX pay dividends?
BNDX pays monthly dividends, reflecting the income from its international bond holdings.
What is the average duration of BNDX's bond holdings?
BNDX typically maintains an average duration between 7-9 years, making it sensitive to interest rate changes in global bond markets.
How does BNDX differ from BNDW?
BNDX focuses exclusively on international bonds (excluding U.S. bonds), while BNDW combines both U.S. and international bonds in a single fund, effectively merging BND and BNDX.
Industry Overview
The BNDX ETF provides exposure to the global investment-grade bond market, excluding U.S. issuers. This market includes sovereign, supranational, and corporate bonds from developed and emerging markets, offering diversification beyond domestic fixed income. International bonds can serve as a hedge against U.S.-specific risks and provide access to different interest rate environments. The global bond market is significantly larger than the U.S. market alone, with varying yield curves and credit profiles across regions. BNDX's currency-hedged approach makes it particularly suitable for U.S. investors seeking international bond exposure without taking on additional currency risk.
Alternative Comparison
Compared to similar international bond ETFs like BWX (SPDR Bloomberg International Treasury Bond ETF), BNDX offers broader exposure including corporate bonds and employs currency hedging, while BWX focuses solely on government bonds without hedging. IAGG (iShares Core International Aggregate Bond ETF) is another close competitor, but BNDX generally has a lower expense ratio. For investors seeking emerging market exposure, EMB (iShares J.P. Morgan USD Emerging Markets Bond ETF) provides an alternative, though with higher risk. BNDX's comprehensive approach to international bonds with currency hedging makes it particularly suitable for U.S.-based investors seeking diversified global fixed income exposure.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and ETFs. With over $7 trillion in global assets under management, Vanguard has a strong reputation for investor-focused products and stewardship. The company's bond ETFs, including BNDX, benefit from Vanguard's scale, which helps keep expense ratios low and tracking errors minimal. Vanguard's unique mutual ownership structure aligns its interests with those of fund shareholders.
Conclusion
BNDX offers U.S. investors an efficient way to gain diversified exposure to international investment-grade bonds while mitigating currency risk through hedging. Its low cost, broad market coverage, and Vanguard's reputable management make it a compelling option for portfolio diversification. While international bonds carry unique risks, they can provide valuable diversification benefits and income potential in a well-balanced investment portfolio. Investors should consider BNDX as part of their fixed income allocation, particularly those seeking to reduce home country bias in their bond holdings.
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