What does the VBND ETF do for a diversified portfolio?
The Vanguard VBND ETF provides investors with exposure to government debt and investment-grade corporate debt from developed markets around the world.
VBND may be used by investors to gain exposure to global debt markets, providing diversification benefits to an existing equity or Australian debt portfolio. It may also be used by investors seeking to gain a regular income stream from the quarterly distributions.
How big is the Vanguard VBND ETF?
The Vanguard VBND ETF had $489.11 million of money invested when we last pulled the monthly numbers. Given VBND’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
VBND ETF fees reviewed
Vanguard charges investors a yearly management fee of 0.20% for the VBND ETF. This means that if you invested $2,000 in VBND for a full year, you could expect to pay management fees of around $4.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Even if you like what you see, before diving straight into buying the VBND ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Vanguard VBND report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
