Vanguard Total World Bond ETF

Frequently Asked Questions About BNDW

What does BNDW invest in?

The fund is designed to mirror the performance of the Bloomberg Global Aggregate Float Adjusted Composite Index. It offers extensive, diversified exposure to high-quality bonds from around the world. Employing a distinctive "ETF of ETFs" structure, its portfolio is characterized by an intermediate duration, encompassing a range of short-, intermediate-, and long-term maturities. Investors can anticipate a consistent income stream from its holdings, which boast strong credit quality. It's important to note that for 75% of its total assets, the fund typically has restrictions: it cannot acquire more than 10% of any issuer's voting securities, nor can more than 5% of its total assets be allocated to a single issuer. These limitations are waived if essential for tracking the benchmark index, or for investments in U.S. government or agency obligations.

What is the expense ratio of BNDW?

Vanguard Total World Bond ETF (BNDW) charges an expense ratio of 0.05%. This is the annual fee deducted from fund assets to cover management and operations.

What is BNDW's dividend yield?

BNDW's trailing-twelve-month yield is 4.65%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of BNDW?

Effective duration measures BNDW's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. BNDW's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of BNDW?

BNDW's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of BNDW?

Yield to maturity (YTM) is the total return you'd earn from BNDW if every bond in the portfolio is held to maturity at the current price. BNDW's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.