Vanguard Global Aggregate Bonds

ETF description

This ETF invests in a diversified portfolio of global bonds, including government and corporate bonds. The fund aims to track an index that represents the performance of investment‑grade bonds from around the world. The bonds included in the portfolio have different maturities and come from various regions, offering broad exposure to the global bond market.

This ETF may appeal to investors seeking a globally diversified bond investment while minimizing the risk associated with currency changes. It could suit those looking for stable income through interest payments from bonds, with a focus on managing risk through diversification across different types of bonds and geographic regions.

Issuer details

Vanguard is the largest provider of mutual funds and the second‑largest provider of ETFs in the world.

Vanguard is a major American investment management company headquartered in Malvern, Pennsylvania. It’s known for being the largest provider of mutual funds in the world and the second‑largest provider of ETFs after BlackRock’s iShares with over $8trn in global assets under management (as at June 2024). Vanguard was founded in 1975 by John C. Bogle and is notable for its unique ownership structure ‑ it is owned by its funds, which in turn are owned by their shareholders. This structure is designed to align Vanguard’s interests with those of its investors, helping to keep costs low.

Index details

The Global Aggregate Bonds index offers investors comprehensive exposure to the global investment‑grade bond market, spanning government and corporate bonds, as well as mortgage‑backed and asset‑backed securities from both developed and emerging markets. With its focus on diversification, stability, and income generation, the index provides opportunities for investors to build a robust and globally diversified fixed‑income portfolio.