The Vanguard Global Aggregate Bond UCITS ETF GBP Hedged Distributing (VAGP) is an Ireland-domiciled fixed-income ETF managed by Vanguard. VAGP is the ticker for the fund's GBP trading line on the London Stock Exchange.

The fund seeks to track the Bloomberg Global Aggregate Float Adjusted and Scaled Index, a benchmark representing a broad segment of the global fixed-income market and including investment-grade and government bonds with maturities greater than one year.

The share class is hedged to the British pound. Its currency-hedging strategy seeks to reduce the impact of movements in the currencies of the underlying securities on returns in GBP, although currency risk cannot be entirely eliminated.

Composition / Exposure Profile

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

• Sovereign government bonds.

• Investment-grade corporate bonds.

• Government agency securities.

• Supranational bonds.

• Securitized securities.

The portfolio spans different markets and currencies, with exposure to issuers across multiple regions. The United States, European countries, Japan, Canada, and other markets can represent significant portions of the portfolio depending on the composition of the benchmark.

The investment-grade requirement concentrates the strategy in higher-quality debt under the benchmark's criteria. However, the fund remains exposed to interest-rate, credit, liquidity, and broader fixed-income market risks.

Structure and Costs

The fund has the U.S. dollar as its base currency, while the VAGP share class is denominated and traded in British pounds. The share class is currency hedged to GBP.

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

VAGP follows a distributing income policy, with distributions made monthly. Income generated by portfolio securities can therefore be periodically paid to shareholders.

History and Evolution of the ETF

The Vanguard Global Aggregate Bond UCITS ETF GBP Hedged Distributing (VAGP) share class was launched in 2019 to provide diversified exposure to the global fixed-income market while hedging currency exposure back to the British pound.

Since its launch, the share class 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, VAGP's performance has reflected global interest-rate cycles, monetary policy decisions by major central banks, and changes in credit-market conditions. Its GBP hedging strategy seeks to reduce the influence of foreign-currency movements on share-class returns.

Additional Information

Vanguard Global Aggregate Bond UCITS ETF GBP Hedged Dist (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $113.31 million.

Over the past 12 months, Vanguard Global Aggregate Bond UCITS ETF GBP Hedged Dist recorded a return of -4.58%, with its price trading between $29.04 and $40.70 during the same period.

The ETF is traded under the ticker VAGP.