Vanguard Launches Total International Bond II Index Fund

Fund will serve as core component for Vanguard fund of funds

VALLEY FORGE, PA — Vanguard has introduced a broad market international bond index fund, Vanguard Total International Bond II Index Fund. The fund will provide international fixed income exposure for Vanguard Target Retirement Funds, Vanguard Target Retirement Trusts, and Vanguard LifeStrategy Funds, who will be the only investors in the new fund.

As the Comapany previously announced, the investment strategy of the new fund mirrors that of Vanguard Total International Bond Index Fund and will seek to track the same benchmark. Effective immediately, Total International Bond II Index Fund will receive new cash flows from the Target Retirement series and LifeStrategy series. The fund of funds’ existing Total International Bond Index Fund holdings will be transitioned to the new fund in a prudent and tax-sensitive manner over time.

READ:  Vanguard Announces Advisory Changes for Two Growth Funds

“This will enable Vanguard to segregate transaction costs produced by the fund of funds from those generated by other investors in Total International Bond Index Fund, which we believe to be in the best interest of investors,” said Kaitlyn Caughlin, head of Vanguard Portfolio Review Department.

Given the significant market volatility experienced last year, and in an effort to protect investors’ interests, Vanguard delayed the launch until market conditions improved. The investment strategies, asset allocations, glide path, and expense ratios for Vanguard Target Retirement series and LifeStrategy series remain the same.

Thanks for visiting! MyChesCo brings reliable information and resources to Chester County, Pennsylvania. Please consider supporting us in our efforts. Your generous donation will help us continue this work and keep it free of charge. Show your support today by clicking here and becoming a patron.

Buy Us a Cup of Coffee
Notify of
Inline Feedbacks
View all comments