The Global ex-U.S. Bond ETF (BNDX11) is a Brazilian exchange-traded fund designed to provide exposure to international fixed-income markets through investments linked to a globally diversified bond portfolio excluding the United States. 

The fund trades on the B3, allowing Brazilian investors to access a broad range of government and corporate bonds from multiple countries through a locally listed investment vehicle.

Classified as an international fixed-income ETF, the fund follows a passive management strategy. Its objective is to invest primarily in shares of the Vanguard Total International Bond ETF (BNDX), which tracks the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged, providing diversified exposure to global investment-grade debt securities.

Composition / Exposure profile

BNDX11 provides exposure primarily associated with:

• International government bonds.

• Investment-grade corporate bonds.

• Developed-market fixed-income securities.

• Emerging-market debt exposure.

• Global interest-rate markets.

• International credit markets.

• Diversified bond portfolios.

• Geographic fixed-income diversification.

The underlying portfolio provides broad exposure to fixed-income markets outside the United States, covering a wide range of issuers, sectors, and maturity profiles across multiple regions.

Performance is generally influenced by global interest-rate trends, inflation expectations, credit-market conditions, sovereign-debt dynamics, and currency movements affecting international bond markets.

Structure and costs

BNDX11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption occur through authorized participants, helping to align the ETF’s market price with its net asset value (NAV).

The fund charges a total annual fee of approximately 0.32%, consisting of 0.25% charged in Brazil and approximately 0.07% associated with the underlying international ETF. BNDX11 does not provide recurring income distributions, as interest payments and other portfolio proceeds are automatically reinvested and reflected in the ETF’s share value.

The fund has an indefinite duration. Although the underlying ETF employs currency hedging against the U.S. dollar at the portfolio level, BNDX11 maintains exposure to fluctuations between the U.S. dollar and the Brazilian real, which may affect overall returns for Brazilian investors.

History and evolution of the ETF

The Global ex-U.S. Bond ETF was launched in 2022 with the objective of facilitating access to international fixed-income markets through the Brazilian stock exchange using a globally diversified bond strategy.

Since inception, the fund has become part of the growing international ETF segment in Brazil, offering investors broader geographic diversification beyond domestic fixed-income markets.

In recent years, BNDX11 has reflected movements in global interest rates, international credit conditions, macroeconomic developments across major economies, and currency fluctuations, all of which influence the performance of global bond portfolios.

Additional Information

Global ex-U.S. Bond ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $47.36 million.

Over the past 12 months, Global ex-U.S. Bond ETF recorded a return of -7.52%, with its price trading between $93.14 and $108.30 during the same period.

The ETF is traded under the ticker BNDX11.