Vanguard ETF Will Offer Global Bond Portfolio
Vanguard has plans to launch a Total World Bond ETF to offer access to investment-grade bonds across the globe.
In May, the company filed a preliminary registration statement for the ETF and plans to launch it in the third quarter. The Vanguard Fixed Income Group will serve as advisor to the fund, which will track the Bloomberg Barclays Global Aggregate Float Adjusted Composite Index and have an estimated expense ratio of 0.09%.
The fund will be an ETF of ETFs, with investments in the Vanguard Total Bond Market ETF and the Vanguard Total International Bond ETF, the company said.
Vanguard Changes Three Funds For MSCI
Vanguard is seeking to get ahead of the costs that could result from MSCI’s proposed sector changes announced in 2017.
The mutual fund giant has created temporary transition benchmarks to track three funds and their respective ETF shares. The company says its approach is in the best interest of shareholders and provides better representation of the sectors they track.
Vanguard will modify its Telecommunication Services Index Fund, its Consumer Discretionary Index Fund and its Information Technology Index Fund. The telecom fund will be renamed the Communication Services Index Fund. These modifications come in advance of MSCI’s planned changes, which should conclude in September.