Vanguard Emerging Markets Government Bond Index Fund Admiral Shares

Frequently Asked Questions About VGAVX

What does VGAVX invest in?

The Vanguard Emerging Markets Government Bond Index Fund Admiral Shares provides investors with an avenue to access sovereign debt issued by developing nations. This fund is structured to passively track the performance of a specific index composed of government bonds from emerging economies. Like all fixed-income investments, the fund is susceptible to interest rate fluctuations; an increase in interest rates typically causes the value of its underlying bonds to decline, thereby reducing the fund's Net Asset Value (NAV). Additionally, it carries inherent emerging markets risk. Debt securities from these regions commonly exhibit greater price volatility and reduced liquidity compared to those from more developed countries. Investors should also be mindful of broader international factors, such as country-specific or regional geopolitical risks. A notable characteristic of this fund is its exclusive investment in U.S. dollar-denominated bonds, which effectively eliminates foreign currency exchange risk for U.S.-based investors. This fund is primarily suitable for long-term investors with a higher tolerance for risk who seek to diversify their existing bond portfolio by gaining exposure to dynamic emerging markets.

What is the expense ratio of VGAVX?

Vanguard Emerging Markets Government Bond Index Fund Admiral Shares (VGAVX) charges an expense ratio of 0.20%. This is the annual fee deducted from fund assets to cover management and operations.

What is VGAVX's dividend yield?

VGAVX's trailing-twelve-month yield is 6.06%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VGAVX?

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

What is the credit quality of VGAVX?

VGAVX'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 VGAVX?

Yield to maturity (YTM) is the total return you'd earn from VGAVX if every bond in the portfolio is held to maturity at the current price. VGAVX'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.