VWOB or BNDX: Which International Bond ETF Is the Better Buy?

VWOB (Vanguard Emerging Markets Government Bond ETF) has strongly outperformed BNDX (Vanguard Total International Bond ETF) over the past several years. The result underscores stronger total-return performance from emerging-market sovereign debt versus broad international developed-market bonds, implying higher yield and FX/credit exposure for portfolios tilted to VWOB.

Analysis

VWOB (Vanguard Emerging Markets Government Bond ETF) has strongly outperformed BNDX (Vanguard Total International Bond ETF) over the past several years. The result underscores stronger total-return performance from emerging-market sovereign debt versus broad international developed-market bonds, implying higher yield and FX/credit exposure for portfolios tilted to VWOB.