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 Bloomberg Global Aggregate Float Adjusted and Scaled index is a comprehensive bond index which tracks the performance of investment‑grade debt from global issuers. This includes a diverse range of bonds from both developed and emerging markets. The index is float‑adjusted, meaning it accounts for the amount of bonds available in the market, and scaled to ensure it reflects the most liquid and investable portion of the global bond market.

The index is designed to provide a broad measure of the global investment‑grade fixed‑income market, offering exposure to a wide array of currencies and economic sectors. It is particularly useful for those interested in a diversified fixed‑income investment strategy that spans multiple countries and sectors.