The Vanguard Global Aggregate Bond UCITS ETF USD Hedged Acc (VAGU) is an Ireland-domiciled fixed-income ETF managed by Vanguard. VAGU is the ticker for the fund's U.S. dollar listing on the London Stock Exchange.

The fund seeks to track the Bloomberg Global Aggregate Float Adjusted and Scaled Index, providing exposure to a broad portfolio of investment-grade and government bonds issued across markets worldwide. The share class uses currency hedging to reduce the impact of movements in other currencies relative to the U.S. dollar.

VAGU follows a passive investment strategy and uses physical replication through representative sampling. Because its benchmark covers a broad universe of bonds, the fund holds a selection of securities designed to closely replicate the key characteristics and performance of the index without necessarily owning every constituent.

Composition / Exposure Profile

VAGU provides diversified exposure to the global fixed-income market and can include:

• Sovereign government bonds.

• Investment-grade corporate bonds.

• Government-related securities.

• Supranational bonds.

• Eligible securitized securities.

The portfolio covers issuers from both developed and emerging markets and includes bonds issued in different currencies. The hedging strategy seeks to reduce the effect of these currency movements on the share class's U.S. dollar returns.

Because the strategy includes bonds across different countries, issuers, and maturities, performance is influenced by movements in global yield curves, changes in inflation expectations, credit conditions, and monetary policy decisions by central banks around the world.

Structure and Costs

VAGU has the U.S. dollar as its base currency and trades in USD on the London Stock Exchange under the ticker VAGU.

The ETF has an ongoing charges figure of 0.08% per year and uses physical replication through representative sampling. It is domiciled in Ireland, operates as part of Vanguard Funds plc, and follows the UCITS framework.

The share class is hedged to the U.S. dollar. The strategy uses currency hedging to reduce the effect of movements in the currencies of the underlying securities relative to USD, although differences can remain due to hedging costs and implementation.

VAGU follows an accumulating income policy. Interest and other income generated by the portfolio are therefore reinvested within the fund rather than periodically distributed to shareholders.

History and Evolution of the ETF

The Vanguard Global Aggregate Bond UCITS ETF USD Hedged Acc (VAGU) was launched in 2019 to provide diversified exposure to the global fixed-income market while hedging currency exposure back to the U.S. dollar.

Since its launch, the fund has maintained a passive strategy linked to the Bloomberg Global Aggregate Float Adjusted and Scaled Index, using representative sampling to track its performance.

Throughout its history, VAGU's performance has reflected global interest-rate cycles, monetary policy decisions by major central banks, and changes in credit-market conditions. Its USD hedging strategy reduces the direct influence of foreign-currency movements, leaving global fixed-income market factors as key drivers of the share class's performance.

Additional Information

Vanguard Global Aggregate Bond UCITS ETF USD Hedged Acc (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $935.30 million.

Over the past 12 months, Vanguard Global Aggregate Bond UCITS ETF USD Hedged Acc recorded a return of -1.46%, with its price trading between $26.30 and $27.40 during the same period.

The ETF is traded under the ticker VAGU.