Objective
Vanguard Total International Bond ETF seeks to track the performance of a benchmark index that measures the investment return of investment-grade bonds issued outside of the United States.
Investment approach
- Seeks to track the performance of the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (Hedged).
- Employs hedging strategies that seek to mitigate uncertainty in exchange rates.
- Passively managed, using index sampling.
- Fund remains fully invested.
- Broad exposure across major bond markets outside of the United States.
- Low expenses minimize net tracking error.
With respect to 75% of its total assets, the fund may not: (1) purchase more than 10% of the outstanding voting securities of any one issuer or (2) purchase securities of any issuer if, as a result, more than 5% of the fund’s total assets would be invested in that issuer’s securities; except as may be necessary to approximate the composition of its target index. This limitation does not apply to obligations of the U.S. government or its agencies or instrumentalities.
Performance snapshot
Quarter-end total returnsas of06/30/2025
Note: Returns are unadjusted for transaction fees where applicable.
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.
Share classesas of
At a glance
Objective
Vanguard Total International Bond ETF seeks to track the performance of a benchmark index that measures the investment return of investment-grade bonds issued outside of the United States.
Investment approach
- Seeks to track the performance of the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (Hedged).
- Employs hedging strategies that seek to mitigate uncertainty in exchange rates.
- Passively managed, using index sampling.
- Fund remains fully invested.
- Broad exposure across major bond markets outside of the United States.
- Low expenses minimize net tracking error.
With respect to 75% of its total assets, the fund may not: (1) purchase more than 10% of the outstanding voting securities of any one issuer or (2) purchase securities of any issuer if, as a result, more than 5% of the fund’s total assets would be invested in that issuer’s securities; except as may be necessary to approximate the composition of its target index. This limitation does not apply to obligations of the U.S. government or its agencies or instrumentalities.
Process & Management
Process
Vanguard Total International Bond ETF seeks to track the investment performance of the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (Hedged). This index provides a broad-based measure of the global, investment-grade, fixed-rate debt markets. The index includes government, government agency, corporate, and securitized non-U.S. investment-grade fixed income investments, all issued in currencies other than the U.S. dollar and with maturities of more than one year. The fund invests in a broadly diversified sampling of bonds in the index that approximates the index’s key risk factors and characteristics. Vanguard Fixed Income Group’s stability and experience have permitted continuous refinement of techniques for tracking the target index. The group uses proprietary software to implement trading decisions that accommodate cash flow and maintain close correlation with the index’s key characteristics. Vanguard’s refined indexing process, combined with low management fees and efficient trading, has provided tight tracking, net of expenses.
Management
Firm Description
Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world’s largest equity and fixed income managers. As chief investment officer, Gregory Davis, CFA, oversees Vanguard’s Equity Index, Investment Strategy, Quantitative Equity, and Fixed Income Groups. Sara Devereux, principal and global head of Fixed Income Group, has direct oversight responsibility for all money market, bond, and stable value portfolios managed by the Fixed Income Group. The Fixed Income Group offers actively managed investments in U.S. Treasury, corporate, and tax-exempt securities, as well as passively managed index portfolios. Since 1981, it has refined techniques in total-return management, credit research, and index sampling to seek to deliver consistent performance with transparency and risk control. The group has advised Vanguard Total International Bond ETF since 2013.
Investment Manager Biographies
Joshua C. Barrickman, CFA, Principal, Co-Head of Fixed Income Indexing Americas
- Portfolio manager.
- Advised the fund since 2013.
- Worked in investment management since 1999.
- B.S., Ohio Northern University.
- M.B.A., Lehigh University.
Tara Talone, CFA
- Portfolio manager.
- Advised the fund since 2022.
- Worked in investment management since 2008.
- B.S., Saint Joseph's University.
- M.B.A., The Wharton School of the University of Pennsylvania.
Quarterly & Annual returns
Cumulative returnsas of06/30/2025
| 1 month | 3 month | 1 year | 3 year | 5 year | 10 year | Since inception[2] | |
|---|---|---|---|---|---|---|---|
| 3711(NAV) | 0.38% | 2.01% | 6.16% | 11.19% | 0.14% | 24.33% | 34.04% |
| Benchmark | 0.42% | 1.95% | 6.01% | 11.48% | 0.34% | 25.99% | 36.66% |
Quarterly commentary
- During the three months ended June 30, 2025, financial markets experienced bouts of volatility sparked by trade policy announcements and an escalation in geopolitical tensions. With inflation still running above target and uncertainty about tariff effects, the Federal Reserve kept short-term interest rates at 4.25%–4.50%, while European central banks adopted a more dovish policy. The European Central Bank cut its primary policy interest rate twice, to end at 2.0%, and the Bank of England trimmed its bank rate once, to end at 4.25%.
Risk and volatilityas of06/30/2025
Relative risk measures |
| 3 year | 5 year | 10 year | ||
|---|---|---|---|---|
| Alpha[3] | ||||
| Primary benchmark*[1] | 0.00% | 0.00% | -0.01% | |
| Broad-based benchmark[2][2] | -0.03% | -0.08% | 0.06% | |
| Beta[4] | ||||
| Primary benchmark*[1] | 1.05 | 1.03 | 1.02 | |
| Broad-based benchmark[2] | 0.45 | 0.42 | 0.37 | |
| R-squared[5] | ||||
| Primary benchmark*[1] | 1.00 | 0.99 | 1.00 | |
| Broad-based benchmark[1] | 0.62 | 0.60 | 0.49 | |
| Information ratio[6] | ||||
| Primary benchmark*[1] | -0.19 | -0.10 | -0.43 | |
| Broad-based benchmark[1] | 0.13 | 0.26 | 0.27 | |
Risk and return statistics |
| 3 year | 5 year | 10 year | ||
|---|---|---|---|---|
| Standard deviation | ||||
| 3711 | 5.83% | 5.23% | 4.28% | |
| Primary benchmark* | 5.56% | 5.05% | 4.17% | |
| Broad-based benchmark | 10.24% | 9.56% | 8.14% | |
| Sharpe ratio | ||||
| 3711 | -0.20 | -0.55 | 0.04 | |
| Primary benchmark* | -0.19 | -0.56 | 0.08 | |
| Broad-based benchmark | -0.20 | -0.47 | -0.17 | |
| Sortino ratio | ||||
| 3711 | -0.22 | -0.66 | 0.09 | |
| Primary benchmark* | -0.22 | -0.67 | 0.14 | |
| Broad-based benchmark | -0.19 | -0.55 | -0.17 | |
Risk measures are calculated from trailing 3, 5, and 10 year fund returns relative to the associated benchmarks.
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 stock market. Although Total International Bond ETF is listed for trading on the Nasdaq, it is possible that an active trading market may not be maintained. Trading of Total International Bond ETF on the Nasdaq may be halted if Nasdaq officials deem such action appropriate, if Total International Bond ETFs are 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 because it invests in a diverse mix of short-, intermediate-, and long-term bonds.
- Income risk: The chance that the fund’s income will decline because of falling interest rates. Income risk is generally moderate for intermediate-term bond funds, 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 low for the fund because it purchases only bonds that are of investment-grade quality.
- Call risk: The chance that during periods of falling interest rates, issuers of callable bonds may call (redeem) securities with higher coupons or interest rates before their maturity dates. The fund would then lose any price appreciation above the bond’s call price and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the fund’s income. For mortgage-backed securities, this risk is known as prepayment risk. Call/prepayment risk should be low for the fund because it invests only a small portion of its assets in callable bonds and mortgage-backed securities.
- 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.
- Currency risk and currency hedging risk. The fund seeks to mimic the performance of foreign bonds without regard to currency exchange rate fluctuations. To accomplish this goal, the fund attempts to offset, or hedge, its foreign currency exposure by entering into currency hedging transactions, primarily through the use of foreign currency exchange forward contracts (a type of derivative). However, it generally is not possible to perfectly hedge the fund’s foreign currency exposure. The fund will decline in value if it underhedges a currency that has weakened or overhedges a currency that has strengthened relative to the U.S. dollar. In addition, the fund will incur expenses to hedge its foreign currency exposure. By entering into currency hedging transactions, the fund may eliminate any chance to benefit from favorable fluctuations in relevant currency exchange rates. Currency risk and currency hedging risk for the fund is low. The fund’s use of foreign currency exchange forward contracts also subjects the fund to counterparty risk, which is the chance that the counterparty to a currency forward contract with the fund will be unable or unwilling to meet its financial obligations. Counterparty risk is low for the fund.
- 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.
- Index-related risks: The fund is subject to risks associated with index investing, which include passive management risk, tracking error risk, and index provider risk. Passive management risk is the chance that the fund's use of an indexing strategy will negatively impact the fund's performance. Because the fund seeks to track the performance of its target index regardless of how that index is performing, the fund's performance may be lower than it would be if the fund were actively managed. Tracking error risk is the chance that the fund's performance will deviate from the performance of its target index. Tracking error risk may be heightened during times of increased market volatility or under other unusual market conditions. Index provider risk is the chance that the fund will be negatively impacted by changes or errors made by the index provider. Any gains, losses, or costs associated with or resulting from an error made by the index provider will generally be borne by the fund and, as a result, the fund's shareholders.
- Nondiversification risk: Because the fund seeks to closely track the composition of the fund's target index, from time to time, more than 25% of the fund's total assets may be invested in issuers representing more than 5% of the fund's total assets due to an index rebalance or market movement, which would result in the fund being nondiversified under the Investment Company Act of 1940. 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, and the fund’s shares may experience significant fluctuations in value.
- Derivatives risk. The fund may invest in derivatives, which may involve risks different from, and possibly greater than, those of investments directly in the underlying securities or assets.
Closing priceas of—
Price analysis
Price history
Inception date:
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The performance data shown represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so that 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.
Performance data for periods of less than one year does not reflect the deduction of purchase and redemption fees. Maintenance, low balance, and service fees may be assessed by some funds. None of these fees are reflected in the performance figures. If these fees were included, the performance would be lower. All other performance data are adjusted for purchase and redemption fees, where applicable. See Fees & Costs below for expense ratio and additional fee details.
The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. Benchmark comparative indexes represent unmanaged or average returns on various financial assets, which can be compared with funds' total returns for the purpose of measuring relative performance.
Source: FactSet financial data and analytics.
Shareholder feesFees paid directly from your investment | |
| Sales charge (load) imposed on purchases | None |
| Purchase fee | None |
| Redemption fee | None |
Annual fund operating expensesExpenses that you pay each year as a percentage of the value of your investment. | |
| Expense ratio | % |
| 12b-1 distribution fee | None |
Distributions
View up to 10 years of distributions for this fund.
Distribution schedule: | Fiscal year-end date:0/NaN/2025
The performance data shown represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so that 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. See performance data current to the most recent month end.
