Summary
- The Vanguard Total World Bond ETF (BNDW) invests to track the Bloomberg Global Aggregate Float Adjusted Composite Index, an investment-grade bond index.
- BNDW could be a Core holding as it simplifies exposure to investment-grade bonds, not only in the US, but internationally. That changes the risk/reward matrix from a pure US-only fund.
- BNDW combines the Vanguard Total Bond Market ETF (BND) with the Vanguard Total International Bond ETF (BNDX). To understand BNDW, both of those ETFs are covered in depth.
- For the purpose of being a Core ETF, I would give BNDW a Buy rating. Conservative investors might want to hold CDs for now and enter BNDW sometime next year.
For further details see:
Vanguard Total World Bond ETF: A Core Holding