Vanguard Total International Bond ETF (BNDX): Complete Beginner's Guide
Vanguard Total International Bond ETF (BNDX) is a international bond ETF from Vanguard with an expense ratio of 0.07% and $55.0B in assets under management. Our Beginner Suitability Score: 10/10 (Great for Beginners). 5-year annualized return: 0.80%.
Last updated: April 2026
Vanguard • International Bond
Expense Ratio
0.07%
AUM
$55.0B
Dividend Yield
3.00%
Inception
2013
Beginner Score
10/10
What is Vanguard Total International Bond ETF?
BNDX provides exposure to investment-grade bonds issued by governments and corporations outside the United States, with currency hedging to reduce exchange-rate risk. It holds thousands of bonds from developed and emerging markets around the world. For beginners, BNDX is a simple way to diversify a bond portfolio beyond U.S. borders while keeping volatility low.
BNDX is managed by Vanguard and has been available since 2013. With $55.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.07%, which means for every $10,000 you invest, you pay approximately $7 per year in management fees.
BNDX at a Glance — Key Metrics
| Expense Ratio | 0.07% |
| Total Holdings | 7,000 |
| P/E Ratio | N/A |
| Beta | 0.10 |
| Dividend Yield | 3.00% |
| AUM | $55.0B |
| Inception Year | 2013 |
| Issuer | Vanguard |
Top 10 Holdings in BNDX
BNDX holds 7,000 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Japan Government Bond 0.5% 2033 | JGB | 2.50% |
| 2 | German Federal Bond 2.5% 2031 | DBR | 2.20% |
| 3 | French Government Bond 3.0% 2034 | OAT | 2.00% |
| 4 | UK Gilt 4.25% 2032 | UKT | 1.80% |
| 5 | Italian Government Bond 3.85% 2030 | BTPS | 1.50% |
| 6 | Canadian Government Bond 3.25% 2033 | CAN | 1.30% |
| 7 | Spanish Government Bond 3.5% 2031 | SPGB | 1.10% |
| 8 | Australian Government Bond 3.75% 2034 | ACGB | 1.00% |
| 9 | European Investment Bank 2.875% | EIB | 0.90% |
| 10 | KfW 3.125% 2030 | KFW | 0.80% |
BNDX's top holding is Japan Government Bond 0.5% 2033 (JGB) at 2.50%, followed by German Federal Bond 2.5% 2031 (DBR) at 2.20% and French Government Bond 3.0% 2034 (OAT) at 2.00%. The top 10 holdings account for 15.10% of the fund's 7,000 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Japan Government Bond 0.5% 2033 | JGB | 2.50% |
| 2 | German Federal Bond 2.5% 2031 | DBR | 2.20% |
| 3 | French Government Bond 3.0% 2034 | OAT | 2.00% |
| 4 | UK Gilt 4.25% 2032 | UKT | 1.80% |
| 5 | Italian Government Bond 3.85% 2030 | BTPS | 1.50% |
| 6 | Canadian Government Bond 3.25% 2033 | CAN | 1.30% |
| 7 | Spanish Government Bond 3.5% 2031 | SPGB | 1.10% |
| 8 | Australian Government Bond 3.75% 2034 | ACGB | 1.00% |
| 9 | European Investment Bank 2.875% | EIB | 0.90% |
| 10 | KfW 3.125% 2030 | KFW | 0.80% |
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BNDX Performance History
Here's how BNDX has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
0.80%
1 Year
3.80%
3 Year
1.00%
5 Year
0.80%
10 Year
1.80%
BNDX has returned 0.80% annualized over 5 years and 1.80% over 10 years. YTD return is 0.80%.
View data table
| Period | Return |
|---|---|
| YTD | 0.80% |
| 1 Year | 3.80% |
| 3 Year | 1.00% |
| 5 Year | 0.80% |
| 10 Year | 1.80% |
Beginner Suitability Score: 10/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
BNDX scores 10/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 7,000 holdings, and has been available since 2013, giving it a proven track record.
How to Buy BNDX — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "BNDX" — Use the search bar in your brokerage platform to find Vanguard Total International Bond ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
BNDX Sector Allocation
Here's how BNDX distributes its investments across different sectors of the economy:
BNDX's largest sector allocation is Government at 55.0%, followed by Corporate at 18.0% and Government-Related at 14.0%.
View data table
| Sector | Weight |
|---|---|
| Government | 55.0% |
| Corporate | 18.0% |
| Government-Related | 14.0% |
| Securitized | 7.0% |
| Supranational | 3.0% |
| Municipal | 1.0% |
| Emerging Markets | 1.0% |
| Cash & Equivalents | 1.0% |
Dollar Cost Averaging Into BNDX
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With BNDX's expense ratio of 0.07%, a $10,000 investment would lose approximately $600 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
BNDX's expense ratio of 0.07% costs $601 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,009.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,646 | $47 |
| 10 | $21,589 | $21,450 | $139 |
| 15 | $31,722 | $31,415 | $307 |
| 20 | $46,610 | $46,009 | $601 |
Pros and Cons of BNDX
Pros
- ✓Provides broad international bond diversification with over 7,000 holdings
- ✓Currency hedging reduces the impact of foreign exchange fluctuations
- ✓Low expense ratio of 0.07% for international fixed-income exposure
- ✓Helps reduce correlation with U.S. bond markets in a portfolio
Cons
- ✗Currency hedging has costs that can slightly reduce total returns
- ✗International bonds may offer lower yields than comparable U.S. bonds
- ✗Complexity of global bond markets makes it harder to evaluate risks
BNDX vs Similar ETFs
See how BNDX stacks up against similar funds:
Frequently Asked Questions
Is BNDX a good ETF for beginners?▾
BNDX has a Beginner Suitability Score of 10/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of BNDX?▾
BNDX has an expense ratio of 0.07%. This means for every $10,000 you invest, you pay approximately $7 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in BNDX?▾
You can invest in BNDX with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does BNDX pay dividends?▾
Yes, BNDX pays dividends with a current yield of approximately 3.00%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in BNDX?▾
The top holdings in BNDX include Japan Government Bond 0.5% 2033 (2.50%), German Federal Bond 2.5% 2031 (2.20%), French Government Bond 3.0% 2034 (2.00%), and more. The fund holds 7,000 total positions, providing broad diversification across many companies.
What sectors does BNDX invest in?▾
BNDX's largest sector allocations are Government (55.00%), Corporate (18.00%), Government-Related (14.00%). This sector distribution shows a focus on government stocks.
How much do BNDX's fees cost over time?▾
With an expense ratio of 0.07%, a $10,000 investment in BNDX would lose approximately $600 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.