ETF Evaluator:
Vanguard Total World Bond ETF ()
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(as of Aug 26)
Best Performing in Global Bond-USD Hedged Over the Last Year
| 3.5% | JPMorgan International Bond Opps ETF (JPIB) |
| 3.3% | iShares Global Govt Bd USD Hdg Act ETF (GGOV) |
| 3.3% | Dimensional Global Credit ETF (DGCB) |
| 3.2% | Avantis Credit ETF (AVGB) |
| 3.1% | Dimensional Global Core Pls Fxd Inc ETF (DFGP) |
Risk
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Risk
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ETF Details
Vanguard Total World Bond ETF Overview
Vanguard Total World Bond ETF (BNDW) is a passively managed Taxable Bond Global Bond-USD Hedged exchange-traded fund (ETF). Vanguard launched the ETF in 2018.
The investment seeks to track the performance of the Bloomberg Global Aggregate Float Adjusted Composite Index that measures the investment return of investment-grade U.S. bonds and investment-grade non-U.S. dollar-denominated bonds.
The fund is a fund of funds and employs an indexing investment approach designed to track the performance of the index, which is a custom, USD-hedged index designed to track the market capitalized weights of the global investment-grade bond market and is comprised of the Bloomberg U.S. Aggregate Float Adjusted Index and the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index.
About Vanguard Total World Bond ETF (BNDW)
There are 1 members of the management team with an average tenure of 7.91 years: Joshua Barrickman (2018). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Bloomberg Global Agg Float Adj TR USD index with a weighting of 100% and Bloomberg Gbl Agg Float Adj Comp TR HUSD index with a weighting of 100%. Vanguard Total World Bond ETF has 4 securities in its portfolio. The top 10 holdings constitute 100.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Vanguard Total World Bond ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Vanguard Total World Bond ETF has 49.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.5% (48.6% domestic bond, 49.8% foreign bond and 0.0% convertible bond). Vanguard Total World Bond ETF has 1.5% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is below the $7 billion average for the Global Bond-USD Hedged category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
BNDW Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Total World Bond ETF expense ratio is low compared to funds in the Global Bond-USD Hedged category. Vanguard Total World Bond ETF has an expense ratio of 0.05%, which is 78% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Total World Bond ETF has a portfolio turnover rate of 12%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 28% for the Global Bond-USD Hedged category.
Recently, in the month of July 2026, Vanguard Total World Bond ETF returned -1.2%, which earned it a grade of D, as the Global Bond-USD Hedged category had an average return of -1.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Vanguard Total World Bond ETF has a trailing yield of 4.26%, which is above the 4.09% category average.
The fund normally distributes its income monthly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard Total World Bond ETF Grades
Year to date, the ETF has returned -0.2%, 0.7 percentage points worse than the category, which translates into a grade of F. The fund has returned 1.9% over the past year (grade of F), 3.8% over the past three years (grade of F) and -0.2% per year over the past five years (grade of F).
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BNDW Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| BNDW Return (NAV) | -1.2% | -0.3% | 1.9% | 3.8% | -0.2% | na |
| BNDW Return (Price) | -1.3% | -0.3% | 1.9% | 3.8% | -0.2% | na |
| NAV +/- Price Return | 0.073% | -0.027% | 0.060% | -0.009% | 0.011% | na |
| Global Bond-USD Hedged Avg | -1.1% | 0.3% | 2.4% | 4.3% | 0.6% | 1.7% |
| BNDW Grade (NAV) | D | F | F | F | F | na |
| +/- Category (NAV) | -0.1% | -0.6% | -0.5% | -0.5% | -0.9% | na |
| BNDW Tax-Cost Ratio | na | na | 1.7% | 1.7% | 1.4% | na |
BNDW Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| BNDW Return (NAV) | -0.2% | 5.0% | 2.4% | 7.2% | -12.9% | -2.1% | 6.2% | 8.3% | na | na | na |
| BNDW Return (Price) | -0.2% | 5.0% | 2.4% | 7.2% | -12.9% | -2.1% | 6.2% | 8.4% | na | na | na |
| NAV +/- Price Ret | 0.178% | -0.003% | -0.012% | -0.000% | -0.003% | 0.017% | -0.000% | 0.3% | na | na | na |
| Global Bond-USD Hedged Avg | 0.5% | 5.0% | 3.6% | 7.8% | -10.5% | -1.7% | 4.9% | 8.7% | 1.4% | 2.5% | 4.8% |
| BNDW Grade (NAV) | F | C | F | D | F | D | C | C | na | na | na |
| +/- Category | -0.7% | 0.0% | -1.1% | -0.6% | -2.4% | -0.4% | 1.3% | -0.4% | na | na | na |
| Risk Measures | |
| Beta: | 0.82 |
| R-Squared: | 95% |
| Standard Deviation: | 4.7% |
| Category Risk Index: | 1.13 |
| Category Risk Rating: | High |
| Total Risk Index: | 0.39 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 4.3% |
| Total Assets: | $ 1,887 Mil |
| Share Class Assets: | $ 1,887 Mil |
| Turnover: | 12.0% |
| Expense Ratio: | 0.05% |
| Index Fund: | Yes |
| Index Tracked: | Bloomberg Global Agg Float Adj TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 7.9 years | |||
| Average Tenure: 7.9 years | |||
| Managers (Year): Barrickman Joshua (2018) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 4 |
| % in Top 10 Holdings: | 100.0% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 49.8% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 48.6% |
| Foreign Bond: | 49.8% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.5% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Vanguard |
| Phone Number: | 866-499-8473 |
| Website: | www.vanguard.com |
| Inception Date: | September 4, 2018 |
Expenses and Fees
| Expense Ratio (%): | 0.05% (Rating: Low) |
| Category Average Expense Ratio (%): | 0.23% |
