Vanguard Total International Bond ETF

Vanguard Total International Bond ETF (BNDX) tracks a Bloomberg index of investment-grade (higher-rated) bonds issued in currencies other than the US dollar. Most of it is government debt from countries such as France, Japan and Germany. It uses currency contracts to limit the effect of exchange-rate swings, so returns depend mainly on bond prices and interest. Its yearly cost of 0.07% matches the most similar fund, iShares IAGG, and is below the 0.13% average for similar funds.

• Over the year to Nov 2, 2026, BNDX returned -0.6%, 3rd of 8 among similar funds.
• Its 5-year annualized return was +0.2% and its 10-year +1.5%.
• In the 2020 COVID crash it fell 5.9% and regained its old high 4.4 months after the low.
• Its worst full calendar year was 2022 (-12.8%); its best was 2014 (+8.8%).
• The deepest fall in its price history was 16.2% (Dec 11, 2020 to Oct 20, 2022), recovered by Feb 17, 2026.

As of Jul 31, 2026, the fund held 6,817 securities; the ten largest made up 3.47% of assets.

The bonds mature in 8.7 years on average (weighted by size), with an average coupon of 2.72%.

• Over the three months to Jul 31, 2026, investors added a net $5.12B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.93%, +0.49%, -1.14%.

BNDX is the ETF share class of Vanguard Total International Bond Index Fund. It aims to track the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). The index holds investment-grade bonds (those judged less likely to default) issued in currencies other than the US dollar and maturing in more than a year. Government, agency, corporate and securitized (loan-backed) bonds from developed and emerging markets are weighted by market value, so the biggest bond markets count most.

Rather than owning every bond in the index, the fund samples: it holds a mix that matches the index's key risk traits, including average maturity (8.6 years for the index as of October 31, 2025). As of July 31, 2026, the fund had 6,817 holdings. UK, French and German government bonds led, yet the top 10 were just 3.47% of assets. Foreign governments made up 74%, companies 24%.

The key mechanical feature is the currency hedge. The fund uses foreign currency forward contracts, a derivative that locks in a future exchange rate, to offset moves in currencies such as the Japanese yen against the dollar. Returns then depend mainly on foreign interest rates and credit quality, not currency swings. The trade-off: holders miss gains when foreign currencies rise against the dollar, and no hedge is perfect.

• BNDX charges 0.07% a year, versus an average of 0.13% for the similar funds below (4th of 8, cheapest first).
• Of that, 0.06% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $7 in the first year and $90 over 10 years (assuming a 5% annual return).

It spreads a bond allocation across thousands of non-US government and corporate bonds while aiming to hedge out swings in foreign currencies against the dollar.

Launched in June 2013, BNDX has no record from the 2008 crisis. In the 2020 COVID crash it fell 5.9% from March 6 to March 18, then recovered by late July. The 2022 slump was harsher: the fund lost 12.87%, its worst calendar year, a reminder that bond prices drop when interest rates climb. Its deepest drop, 16.2% from December 2020 to October 2022, took about 40 more months to recover, until February 2026. Anyone drawing cash in 2022 would have redeemed shares at depressed prices.

Income is paid monthly, and the yield over the past 12 months was 4.61% as of October 27, 2026, though payouts can change. Costs are low at 0.07% a year. In the SEC's standard $10,000 example, fees total about $90 over 10 years. Past results don't predict the future, and any retirement plan needs to look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).