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This International Bond ETF Could Offer High Yields -- and Higher Risk

Source: Motley Fool

2026-03-07 12:23:00 ET

A big trend right now is investors looking for opportunities beyond the U.S. market. If you want to diversify your portfolio away from U.S. stocks and bonds, one way to do it is to buy an international bond fund, like the Vanguard Total International Bond ETF (NASDAQ: BNDX) .

But if you want to earn higher yields and are willing to accept some additional risk, you could buy the Vanguard Emerging Markets Government Bond ETF (NASDAQ: VWOB) . This international bond fund lets you own government debt from up-and-coming markets. The VWOB has outperformed the BNDX and another popular bond index fund, the Vanguard Total Bond Market ETF (NASDAQ: BND) , for the past year.

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