Vanguard To Unveil Its First International Fixed-Income Funds For U.S. Investors
The company announced it has filed registration statements for Vanguard Total International Bond Index Fund and Vanguard Emerging Markets Government Bond Index Fund.
The Total fund will track the Barclays Global Aggregate ex-USD Float Adjusted Index (Hedged), which includes more than 7,000 global government, agency and corporate securities in 57 countries in Asia, Europe, Canada and South America.
The goal is to provide low-cost exposure to one of the world’s largest asset classes, said Vanguard CEO Bill McNabb in a company statement. It will employ currency hedging strategies.
The Emerging Markets fund will track Barclays Emerging Markets Sovereign Index (USD), which includes about 200 government bonds in 39 countries.
By investing solely in U.S. dollar denominated international bonds, the fund will not subject U.S.-based investors to currency risk, Vanguard said.