Emerging Markets Government Bond ETF (VWOB)

OPTIONS as of
02/23/2017

Options Expense ratio Minimum
Admiral 0.32% N/A
Investor 0.49% N/A
Inst 0.29% $5.0 Million
ETF 0.32%

Vanguard ETF Shares can be bought and sold only through a broker (who may charge a commission) and cannot be redeemed with the issuing fund. The market price of Vanguard ETF Shares may be more or less than net asset value.

About our options  


 

KEY FACTS

Product type: Emerging Markets Bond
VWOB
 inception on 05/31/2013
$1.3 billion

This represents the total net assets for all share classes of Vanguard's U.S. funds, as well as any collective trust that shares the same investment strategy, management and holdings.

 as of 01/31/2018
$1.0 billion net assets for
VWOB
 as of 01/31/2018
1,026 holdings as of 01/31/2018
Indexed to the BloomBarc USD EmergMkt GovRIC CapIx (BURCTRUU)
Turnover rate (Fiscal year-end  10/31/2017) 19.10%
CUSIP: 921946885

TRADING

Intraday Optimized Value Ticker
Intraday Optimized Value (IOV), also known as the Intraday Indicative Value (IIV), is the calculated per share price of the ETF which is published every 15 seconds based on the last sale price of each of the underlying securities in the portfolio basket, plus any estimated cash amounts associated with the creation unit.

 VWOB.IV
Outstanding shares: 12,514,015 as of 01/31/2018
ETF exchange: NASDAQ Stock Exchange

Investment approach



  • Seeks to track the performance of the Bloomberg Barclays USD Emerging Markets Government RIC Capped Index.
  • Passively managed, using index sampling.
  • Fund remains fully invested.
  • Low cost exposure to emerging markets debt.
  • Low expenses minimize net tracking error.

Total returns

as of 12/31/2017

View as:

as of 12/31/2017

10%
8
6
4
2
0%
 
 
 
  1 year 3 year 5 year 10 year

05/31/2013

Market price  8.44% 6.56% 4.86%
NAV 
8.44% 6.57% 4.71%

Bloomberg Barclays USD Emerging Markets Government RIC Capped Index

*
8.46% 6.67%

In order to determine the performance of the fund prior to adjustments for fair value pricing, simply subtract the Fair value impact figure from the NAV performance figure. For example, by subtracting -0.09% from 18.23%, we arrive at a performance figure of 18.32% [18.23% - (-0.09%) = 18.32%].

0.02% 0.00%

* Includes dollar-denominated bonds with maturities of more than one year issued by emerging market governments, government agencies, and government-owned corporations.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


Regional exposure as of 01/31/2018

  Region  VWOB

Bloomberg Barclays USD Emerging Markets Government RIC Capped Index

+/- Weight
Emerging Markets 73.9%
Middle East 3.6%
Other 22.5%
0%
75%
Total 100.0% 0.0%  

Top 10 countries as of 01/31/2018

Country Region VWOB

Bloomberg Barclays USD Emerging Markets Government RIC Capped Index

+/- Weight
China Emerging Markets 16.3%
Mexico Emerging Markets 8.1%
Brazil Emerging Markets 7.1%
Indonesia Emerging Markets 5.8%
United Arab Emirates Emerging Markets 5.0%
Argentina Other 4.7%
Turkey Emerging Markets 4.6%
Russia Emerging Markets 4.5%
Saudi Arabia Middle East 3.3%
Colombia Emerging Markets 2.7%
Top 10 equals 62.1% of bond

Country diversification details  

Distribution by credit quality(% of fund) as of 01/31/2018

  Credit rating  VWOB
U.S. Government 0.0%
Aaa 0.0%
Aa 4.7%
A 19.6%
Baa 36.4%
< Baa 39.3%
0%
40%
Total 100.0%
* Credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). ”NR” is used to classify securities for which a rating is not available. NR securities may include a fund’s investment in Vanguard Market Liquidity Fund or Vanguard Municipal Cash Management Fund, each of which invests in high-quality money market instruments and may serve as a cash management vehicle for the Vanguard funds, trusts, and accounts. U.S. Treasury, U.S. Agency, and U.S. Agency mortgage-backed securities appear under ”U.S. Government.” Credit-quality ratings for each issue are obtained from Barclays using ratings derived from Moody’s Investors Service (Moody’s), Fitch Ratings (Fitch), and Standard & Poor’s (S&P). When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. When one rating is available, that rating is used.

Fundamentals

Bond
as of 01/31/2018
VWOB

Bloomberg Barclays USD Emerging Markets Government RIC Capped Index

Number of bonds 1,026 1,097
Yield to maturity 4.68% 4.74%
Short-term reserves 1.10% N/A
Average duration 6.5 (years) 6.4 (years)

Average effective maturity (taxable bond funds and balanced funds except Tax-Managed Balanced)
Average Effective Maturity is defined as the average length of time until fixed income securities held by a fund reach maturity and are repaid, taking into consideration that an action such as a call or refunding may cause some bonds to be repaid before they mature.

Average stated maturity (municipal bond funds and Tax-Managed Balanced)
Average stated maturity represents the average of the stated maturity dates for all fixed income securities held by the fund.

Average maturity (money market funds only)
Average maturity represents the weighted average maturity of the fund's holdings using the date of the next interest rate adjustment for certain adjustable-rate securities held by the fund.

10.2 (years)
Average coupon 5.38% 5.39%

Risk and volatility as of 01/31/2018

  VWOB

Bloomberg Barclays USD Emerging Markets Government RIC Capped Index

R-squared N/A 1.00
Beta N/A 1.02
Alpha – 0.02 N/A
Standard deviation 4.91% 4.79%
Sharpe ratio 1.19 1.25

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

Many investors invest in bonds and bond funds in an attempt to lower the overall risk of their portfolios. This strategy makes sense when the bonds owned are hedged developed market bonds because their returns typically are not highly correlated with, and far less volatile than, stock returns. The strategy is less likely to be effective, however, when bonds owned are emerging market bonds. Returns of emerging market bonds, even dollar-denominated bonds like those owned by the fund, can be quite volatile, and tend to correlate more closely with U.S. and foreign stock returns than the returns of developed market bonds in general. Consequently, if your goal is to lower risk and volatility, this fund is not an appropriate investment.  An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall bond market. Although Emerging Markets Government Bond ETF is listed for trading on the Nasdaq it is possible that an active trading market may not be maintained. Trading of Emerging Markets Government Bond ETF on the Nasdaq may be halted if Nasdaq officials deem such action appropriate, if Emerging Markets Government Bond ETF is delisted from the Nasdaq, or if the activation of marketwide “circuit breakers” halts stock trading generally. The fund’s performance could be hurt by:

  • Interest rate risk: The chance that bond prices will decline because of rising interest rates. Interest rate risk should be moderate for the fund based on expected sensitivity of the portfolio to interest rate movements.
  • Income risk: The chance that the fund’s income will decline because of falling interest rates. Income risk should be moderate for the fund, so investors should expect the fund’s monthly income to fluctuate accordingly.
  • Credit risk: The chance that a bond issuer will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Credit risk should be moderate for the fund because it purchases investment-grade and below-investment-grade (also known as high-yield or junk) bonds.
  • Emerging markets risk: The chance that the bonds of governments, government agencies, and government-owned corporations located in emerging markets will be substantially more volatile, and substantially less liquid, than the bonds of governments, government agencies, and government-owned corporations located in more developed foreign markets. Emerging markets risk should be high for the fund.
  • Country/regional risk: The chance that world events—such as political upheaval, financial troubles, or natural disasters—will adversely affect the value of securities issued by foreign companies, governments, or government agencies. Because the fund may invest a large portion of its assets in bonds of issuers located in a particular country or region, the fund’s performance may be hurt disproportionately by the poor performance of its investments in that area. Country/regional risk for the fund is high.
  • Nondiversification risk: The chance that the fund’s performance may be hurt disproportionately by the poor performance of bonds issued by just a few issuers or even a single issuer. The fund is considered nondiversified, which means that it may invest a significant percentage of its assets in bonds issued by a small number of issuers.
  • Index sampling risk: The chance that the securities selected for the fund, in the aggregate, will not provide investment performance matching that of the index. Index sampling risk for the fund should be low.




Vanguard ETF Shares can be bought and sold only through a broker (who may charge a commission) and cannot be redeemed with the issuing fund. The market price of Vanguard ETF Shares may be more or less than net asset value. Investments are subject to market risk. Go to the performance page to read more about risk and volatility.