Vanguard Emerging Markets Government Bonds

ETF description

This ETF focuses on investing in sovereign bonds issued by emerging market governments. Sovereign bonds are debt securities issued by national governments to finance various projects or obligations. The fund provides exposure to a range of emerging market countries, offering investors the opportunity to diversify their portfolios with bonds from economies that may offer higher yields compared to developed markets. However, emerging market bonds can come with higher risk due to economic and political uncertainties.

This ETF may appeal to investors looking for income through bond interest payments while seeking exposure to the growth potential of emerging markets. It could be suitable for those who are comfortable with the risks associated with investing in bonds from countries that may experience more volatility compared to more stable, developed markets.

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 Emerging Markets Government Bonds index offers investors a comprehensive measure of performance for sovereign debt issued by emerging market countries. By focusing on government bonds from developing economies, the index provides targeted exposure to higher yield opportunities and diverse currency risks associated with these markets.