Vanguard USD Emerging Markets Government Bond UCITS ETF USD Distributing

Vanguard USD Emerging Markets Government Bond UCITS ETF USD Distributing is an exchange-traded fund that tracks the performance of a broad index comprising US dollar-denominated bonds issued by emerging market governments and public bodies. Launched on 19 February 2019 and managed by Vanguard Asset Management, it employs a passive, physical sampling replication method to closely mirror the Bloomberg USD Emerging Markets Government RIC Capped Index or similar benchmark, holding approximately 1,411 bonds with a focus on government-related sovereigns (66%), agencies (33%), and minimal cash. Key country exposures as of 31 December 2025 include Saudi Arabia (10.6%), Mexico (8.5%), United Arab Emirates (7.5%), China (6.3%), and Indonesia (5.7%), spanning diverse emerging regions like Latin America, Middle East, and Asia. The portfolio features a blended credit quality with 29% BBB-rated, 23% A-rated, 12% AA-rated, and 36% below BBB, alongside varied maturities from short-term (38% in 1-5 years) to long-term (over 25 years at 9%). Distinguished by its monthly income distributions, it provides regular payouts to investors while offering exposure to higher-yielding emerging market debt, playing a vital role in fixed-income diversification strategies within global portfolios. With a fund size exceeding $1.2 billion, it underscores Vanguard's commitment to low-cost, transparent access to this asset class.