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Vanguard launches Global Aggregate Bond UCITS ETF


Vanguard has launched the Vanguard Global Aggregate Bond UCITS ETF on the London Stock Exchange (LSE), and Deutsche Börse. 

Designed for investors seeking very broad fixed income exposure the Vanguard Global Aggregate Bond UCITS ETF provides access to a universe of over 23,500 investment grade bonds (as at June 20th 2019) issued by governments, corporates and agencies across both developed and emerging markets. The ETF is ‘currency hedged’ which is a technique to minimise the risks associated with movements in currency exchange rates.

Mark Fitzgerald, Head of ETF Product Management, Europe, says: “Investors are often tempted to invest locally when it comes to fixed income, largely out of familiarity. However, the added diversity of a global bond allocation can actually reduce the risk of an investor’s fixed income portfolio, without necessarily decreasing the expected returns, provided the currency risk is hedged.

“By adding global bonds, you gain exposure to a greater number of securities, different inflation and economic environments, as well as business cycles from a wider range of markets.”

Vanguard bond index UCITS ETFs are managed by the Vanguard Fixed Income Group (FIG). Vanguard has more than 30 years of bond index-tracking expertise. FIG takes a team based approach to investment management, avoiding a star manager system. The team is globalised with trading desks in the United States, United Kingdom and Australia driving an investment approach that is rigorous, analytical, high-controlled, and cost effective.

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