Vanguard VBND ETF (ASX:VBND)

Vanguard Global Aggregate Bond Index (Hedged) Fund ETF

Global

About the VBND ETF

Vanguard Global Aggregate Bond Index (Hedged) Fund ETF VBND provides low cost exposure to high-quality, income-generating securities issued by governments, government-owned entities, government-guaranteed entities, investment-grade corporate issues and securitised assets from around the world.

The Fund is hedged to Australian dollars so the value of the Fund is relatively unaffected by currency fluctuations.

VBND ETF is designed for investors seeking exposure to a diversified portfolio of international fixed interest securities that is relatively unaffected by currency fluctuations. It is benchmarked to the Bloomberg Global Aggregate Float-Adjusted and Scaled Index hedged into Australian dollars and pays distributions quarterly.

VBND ETF Performance Review

5.39

-3.8

0.22

0.56

2.68

3.48

Data Current To: 31/12/2023

Our review of VBND ETF

Diversified, hedged, global portfolio with a mix of government and corporate bonds

Low risk portfolio with a high weighted average credit rating of AA-

The ETF invests in a high percentage of fixed rate bonds and is exposed to interest rate risk

What we like about the VBND ETF

Hedged to AUD

Relatively low management fee of 0.20%

Things to be aware of about the VBND ETF

Significant loss in 2022 but now shows much improved yield to maturity

VBND ETF Investment Strategy

Vanguard Global Aggregate Bond Index (Hedged) ETF seeks to track the return of the Bloomberg Global Aggregate Float-Adjusted and Scaled Index hedged into Australian dollars before taking into account fees, expenses and tax.

What does the VBND ETF Invest In?

VBND is a Multi Sector ETF.

VBND ETF has more than 50% invested in Treasury bonds and also invests in corporate, securitised and government related securities. The ETF has more than $638 million invested in the underlying Vanguard while the underlying fund has assets of more than $8.5 billion as at 31 December 2023.

Investments in the underlying fund are more than 99% investment grade.

VBND ETF Credit Quality

The average credit quality of the VBND ETF is AA-.

A detailed breakdown of the credit quality is expressed below.

VBND Frequently Asked Questions

What index does the VBND ETF aim to replicate?

The VBND ETF aims to replicate the Bloomberg Global Aggregate Float-Adjusted and Scaled Index.

How often does VBND ETF pay distributions?

The distribution frequency of VBND is Quarterly.

When did the VBND ETF start?

The inception date of the VBND ETF was 10/10/2017.

What are the net assets of the VBND ETF?

VBND has net assets of $1194.6m (AUD) as of 31/12/2023.

What are the number of holdings in the VBND ETF?

Total number of holdings in VBND is 11967 as of 31/12/2023.

What are the management fees for the VBND ETF?

The annual management fees for the VBND ETF are 0.2% p.a. Learn more about ETF fees in this article.

How can I invest in the VBND ETF?

VBND is an Exchange Traded Fund, and units may be bought or sold on the ASX like shares. Learn how to buy and sell ETFs in this article.

Does the VBND ETF have a minimum investment amount?

No, there is no minimum to invest in the Vanguard VBND ETF. Exchange Traded Funds in general do not have a minimum investment amount required by the issuer. However, if you choose to invest through a broker, they may choose to set their own minimum investment amount.

Are there any performance fees associated with the VBND ETF?

No, VBND has no performance fee. This is one of the advantages of Exchange Traded Funds, as they are traded like shares, you’ll generally only pay a commission to buy or sell units and an ongoing management fee.