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Vanguard launches Total International Bond Index Fund

The Vanguard Total International Bond Index Fund is part of the company's first effort to offer foreign bond funds

June 03, 2013 4:28 IST | India Infoline News Service
Vanguard Group on Friday launched an international bond fund that may appeal to investors hunting for yield in overseas markets.

The Vanguard Total International Bond Index Fund is part of the company's first effort to offer foreign bond funds. The fund can be purchased now and its ETF shares, with a ticker of "BNDX", are expected to begin trading on June 4.

The Total International Bond Index Fund will track the performance of the Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). The index includes about 7,000 investment-grade corporate and government bonds from 52 countries.

The index caps its exposure to any single bond issuer, including government issuers, at 20% to meet regulated investment company tax diversification requirements, Vanguard said. The top country holdings, as of April 30, were Japan (22%), France (11%), Germany (11%), Italy (8%) and the United Kingdom (8%).

The expense ratios for the fund's Investor, Admiral, Institutional and ETF share classes will range from 0.12% to 0.23%.

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