At a glance
CBON charges 0.5% a year, above the 0.09% average of the 7 funds most like it (the most expensive of 8). It has $23.7M in assets, the 8th largest of that group; it paid 1.44% of its price in distributions over the past 12 months, monthly. Over the past year it returned +9.9% with distributions reinvested, the best of those 8 funds; over three years it returned +6.3% a year. At its worst it fell 4.0% in the 2020 crash (S&P 500: 33.7%) and 11.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 39 months after the lows. Its ten largest positions make up 46.0% of the fund, out of 34 in all.
The short version
VanEck China Bond ETF (CBON) tracks a FTSE Russell index of bonds issued in China in renminbi, China's currency. The issuers are the government, state-owned policy banks and companies rated investment grade. Its returns rise and fall with Chinese interest rates and the renminbi's value against the dollar. That exposure costs 0.50% a year, compared with a 0.09% average for bond funds of similar maturity. The fund held just $23.7 million as of June 30, 2026.
Price history
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CBON +9.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| CBON official prospectus, to Dec 31, 2025 | — | +6.04% | — | +1.66% | +2.30% | — |
| CBON price data to Oct 27, 2026 | +7.4% | +9.9% | +6.3% | +2.1% | +3.2% | +2.5% |
- Over the year to Oct 27, 2026, CBON returned +9.9%, 1st of 8 among similar funds.
- Its 5-year annualized return was +2.1% and its 10-year +3.2%.
- In the 2020 COVID crash it fell 4% and regained its old high 3.6 months after the low.
- Its worst full calendar year was 2022 (-8.0%); its best was 2020 (+12.1%).
- The deepest fall in its price history was 14.1% (Feb 22, 2022 to Nov 3, 2022), recovered by Jan 5, 2026.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.4% | — |
| 2025 | +5.4% | +6.04% |
| 2024 | +1.8% | +1.50% |
| 2023 | +3.0% | +0.95% |
| 2022 | -8.0% | -6.01% |
| 2021 | +5.9% | +6.33% |
| 2020 | +12.1% | +11.13% |
| 2019 | +2.7% | +2.68% |
| 2018 | +1.8% | +1.26% |
| 2017 | +6.9% | +6.91% |
| 2016 | -6.3% | -6.43% |
| 2015 | +0.6% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 1.5% over that stretch · deepest drop along the way 4%, back to its old high 3.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 9.8% over that stretch · deepest drop along the way 11.5%, back to its old high 38.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.2600 | |
| 2025 | $0.3600 | -21.7% |
| 2024 | $0.4600 | -32.4% |
| 2023 | $0.6800 | +13.3% |
| 2022 | $0.6000 | -20.0% |
| 2021 | $0.7500 | +7.1% |
| 2020 | $0.7000 | -17.6% |
| 2019 | $0.8500 | +14.9% |
| 2018 | $0.7400 | -1.3% |
| 2017 | $0.7500 | +2.7% |
| 2016 | $0.7300 | +7.4% |
| 2015 | $0.6800 |
What's inside
As of Jun 30, 2026, the fund held 34 securities; the ten largest made up 46.05% of assets.
| Holding | Weight | |
|---|---|---|
| CHINA SOUTHERN POWER Bonds and notes | 6.36% | |
| CHINA CONSTRUCTION BANK Bonds and notes | 6.24% | |
| CHINA GOVERNMENT BOND Bonds and notes | 5.81% | |
| CHINA GOVERNMENT BOND Bonds and notes | 4.65% | |
| EXPORT-IMPORT BANK CHINA Bonds and notes | 4.11% | |
| AGRICUL DEV BANK CHINA Bonds and notes | 4.08% | |
| CHINA PETROCHEM CORP Bonds and notes | 3.92% | |
| CHINA GOVERNMENT BOND Bonds and notes | 3.65% | |
| CHINA EVERBRIGHT BANK Bonds and notes | 3.61% | |
| BANK OF COMMUNICATIONS Bonds and notes | 3.61% | |
| STATE GRID CORP OF CHINA Bonds and notes | 3.47% | |
| AGRICUL DEV BANK CHINA Bonds and notes | 3.34% | |
| CHINA PETROLEUM & CHEM Bonds and notes | 3.26% | |
| CHINA DEVELOPMENT BANK Bonds and notes | 3.16% | |
| AGRICUL DEV BANK CHINA Bonds and notes | 3.11% |
By country
China 98.31%By issuer
Foreign governments 65.15%Companies 33.16%The bonds mature in 3.4 years on average (weighted by size), with an average coupon of 2.55%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $4.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.27%, +1.38%, -0.31%.
How it works
CBON tries to match the FTSE Chinese Broad Bond 0-10 Years Diversified Select Index, before fees. FTSE Russell runs the index. It holds fixed-rate bonds issued in China in renminbi, China's currency, that mature within 10 years. It draws on three kinds of bonds. The first is Chinese government bonds. The second is bonds from three state-owned policy banks, which finance trade and state projects: China Development Bank, the Agricultural Development Bank of China and the Export-Import Bank of China. The third is company bonds rated investment grade, meaning S&P or Moody's sees a relatively low risk of default.
The index held 580 bonds from 56 issuers as of December 31, 2025. VanEck doesn't buy them all. It uses sampling, which means holding a smaller set of bonds chosen to behave like the index. As of June 30, 2026, the fund held 34 bonds, and the 10 largest made up 46% of assets. The biggest were bonds from China Southern Power Grid (6.4%) and China Construction Bank (6.2%), plus a Chinese government bond (5.8%). The average maturity was 3.4 years.
The fund buys its bonds through Bond Connect, a trading link between Hong Kong and China's bond market. Chinese authorities could restrict or suspend it. The fund held no derivatives, such as currency hedges, as of June 30, 2026. So its value in dollars rises and falls with the renminbi. It is also non-diversified, meaning it may put more of its assets in a single issuer.
What it really costs
- CBON charges 0.5% a year, versus an average of 0.09% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.4% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.41% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $1,082 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| CBON | $51 | $249 | $464 | $1,082 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It brings Chinese interest rates and renminbi exposure that a US-focused portfolio lacks, but its narrow focus and 0.50% cost limit it to a small supporting role.
CBON could add Chinese government, policy bank and company bonds, priced in renminbi, to a portfolio built mostly on US assets. It launched in 2014, so it has no 2008 record. In the 2020 crash it fell 4% and recovered in about 3.6 months. In 2022 it fell 11.5% from its February 22 peak to October 12. The drop deepened to 14.1% by November 3, 2022, its deepest on record, and it took until January 5, 2026 to recover. Its worst calendar year in prospectus figures was 2016, a 6.43% loss. Anyone who sold shares for income during that stretch sold below the old peak.
Income is modest: the yield over the prior 12 months was 1.44% as of October 27, 2026, paid monthly. The 0.50% expense ratio compares with a 0.09% average for bond funds of similar maturity. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small, deliberate stake in Chinese government, policy bank and company bonds, plus exposure to the renminbi against the US dollar.
- Investors looking for bond returns that can differ from US bond funds; CBON returned 9.9% over the year to October 27, 2026.
- Patient holders who can sit through long slumps; its 14.1% drop that began in February 2022 took until January 5, 2026 to recover.
Look elsewhere if
- Cost-conscious investors: the 0.50% expense ratio is the highest of the eight similar-maturity bond funds compared; the other seven average 0.09%.
- Retirees who rely on bond income; the monthly payouts added up to a yield of just 1.44% over the 12 months to October 27, 2026.
- Anyone uneasy with China-specific risks: currency swings, possible limits on access through Bond Connect, and Chinese tax rules that could change retroactively.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| CBON this fund | 3.4 yrs | 0.5% | $23.7M | +9.9% | +6.3% |
| VCSH Vanguard Short-Term Corporate Bond ETF | 3.5 yrs | 0.03% | $51.74B | +1.9% | +5.7% |
| IGSB iShares 1-5 Year Investment Grade Corporate… | 3.7 yrs | 0.04% | $23.46B | +1.5% | +5.4% |
| BNDX Vanguard Total International Bond ETF | 8.7 yrs | 0.07% | $122.53B | -0.6% | +4.1% |
| BIV Vanguard Intermediate-Term Bond ETF | 7.5 yrs | 0.03% | $52.45B | -0.7% | +5.1% |
| VCIT Vanguard Intermediate-Term Corporate Bond E… | 8.2 yrs | 0.03% | $72.04B | -0.6% | +7.1% |
| IGIB iShares 5-10 Year Investment Grade Corporat… | 8.3 yrs | 0.04% | $18.72B | -1.0% | +6.4% |
| EMB iShares J.P. Morgan USD Emerging Markets Bo… | 11 yrs | 0.39% | $14.61B | 0.0% | +9.0% |
Questions investors ask
Does CBON pay monthly dividends?
Yes. CBON pays monthly distributions, the fund version of dividends, from the interest on its bonds. Over the 12 months to October 27, 2026, it paid about $0.35 per share, a yield of 1.44%. As of June 30, 2026, the bonds' average coupon, or interest rate, was 2.55%. Because the bonds pay in renminbi, the dollar value of that income can shift with the exchange rate.
What's the difference between CBON and VCSH?
They own very different bonds. CBON holds Chinese government, policy bank and company bonds priced in renminbi. Vanguard Short-Term Corporate Bond ETF (VCSH) is a short-term corporate bond fund, not a China fund. The two are alike mainly in average maturity: 3.4 years for CBON and 3.5 for VCSH. VCSH charges 0.03% a year, compared with 0.50% for CBON. It is also far larger: $51.7 billion as of August 31, 2026, against CBON's $23.7 million as of June 30, 2026. Over one year, CBON returned 9.9% to October 27, 2026, and VCSH returned 1.9% to October 30, 2026.
Is CBON good for retirement?
It may suit some retirees as a small diversifier, not as a core bond holding. Its price swings have been mild. But its 14.1% drop that began in February 2022 took until January 5, 2026 to recover. Income is modest: the yield was 1.44% over the 12 months to October 27, 2026, paid monthly. Costs are high for a bond fund, at 0.50% a year against a 0.09% average for bond funds of similar maturity. It also carries currency, tax and market-access risks that are specific to China.
How has CBON performed over the last 10 years?
Modestly. Its prospectus shows an average return of 2.3% a year over the 10 years to December 31, 2025, and 1.66% a year over five years. Calendar years ranged from a 6.43% loss in 2016 to an 11.13% gain in 2020, with a 6.01% loss in 2022. Based on market prices, it returned 3.2% a year over 10 years and 9.9% over one year to October 27, 2026. That includes a 7.4% gain in 2026 through that date.
What are the main risks of CBON?
Its biggest risks are specific to China. The bonds are priced in renminbi, and the fund held no derivatives, such as currency hedges, as of June 30, 2026. So exchange rates affect returns. It buys through Bond Connect, which authorities could restrict or suspend. China's tax treatment of the fund's income is unclear and could change, possibly retroactively. The fund is non-diversified and leans on financials, government, energy and utilities issuers. Rising Chinese interest rates would also push its bond prices down.