A Low-Cost, Currency-Hedged International-Bond ETF
By hedging currency exposure, this fund greatly reduces volatility that plagues traditional international-bond funds.
While investing in international-bond funds can help diversify credit and interest-rate risk, high fees and currency risk can diminish their appeal. Vanguard Total International Bond ETF (BNDX) attempts to address these problems.
This fund offers diversified, currency-hedged exposure to foreign investment-grade government, corporate, and securitized bonds for a low 0.20% annual fee. It may be a suitable core holding for investors looking to diversify their bond holdings outside the United States.
Thomas Boccellari does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.