(BNDX) Total International Bond - Overview

The Vanguard Total International Bond Index Fund ETF (BNDX) uses a passive indexing strategy to replicate the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD-hedged), delivering exposure to a broad set of investment-grade, fixed-rate sovereign and corporate bonds issued outside the United States. Because the index is non-diversified, the fund’s performance closely follows the underlying market composition without active security selection.

As of the most recent quarterly report (Q4 2025), BNDX holds roughly $41 billion in assets, charges an expense ratio of 0.05 %, and reports a 30-day SEC yield of 2.1 %. The portfolio’s weighted average duration is about 7.2 years, and its credit quality is high, with an average Bloomberg rating of A-. Top sector allocations are 30 % European sovereigns, 25 % Asian sovereigns, and 20 % non-U.S. investment-grade corporates, reflecting the index’s geographic weighting.

Key drivers of BNDX’s returns include global interest-rate trends (especially the policy stance of the ECB and BoJ), the effectiveness of the USD-hedge in a period of modest dollar strength, and the relative tightness of investment-grade credit spreads versus emerging-market debt. A potential risk is a rapid shift in central-bank policy that could steepen yields, which would disproportionately affect the fund’s longer duration.

For a deeper, data-rich analysis of how these macro factors may impact BNDX’s risk-adjusted performance, consider exploring the fund’s profile on ValueRay.