Vanguard Launches Total International Bond II Index Fund

Vanguard Launches Total International Bond II Index Fund
Fund will serve as core component for Vanguard fund of funds

VALLEY FORGE, PA (February 17, 2021)—Vanguard today 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 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.

“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.

 

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About Vanguard
Vanguard is one of the world’s largest investment management companies. As of December 31, 2020, Vanguard managed $7.1 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers 423 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.

All figures as of December 31, 2020 unless stated otherwise.

For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. Diversification does not ensure a profit or protect against a loss. Investments in bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.

Mutual funds, like all investments, are subject to risks. Each LifeStrategy Fund invests in four broadly diversified Vanguard funds and is subject to the risks associated with those underlying funds.

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