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ETF Specialist

A Low-Cost, Currency-Hedged International-Bond ETF

By hedging currency exposure, this fund greatly reduces volatility that plagues traditional international-bond funds.

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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.

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Thomas Boccellari does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.