Vanguard USD Emerging Markets Government Bond UCITS ETF

Vanguard USD Emerging Markets Government Bond UCITS ETF is a UCITS-compliant exchange-traded fund that tracks the Bloomberg EM USD Sovereign + Quasi-Sovereign Index, focusing on a broad portfolio of US dollar-denominated bonds issued by emerging market governments and public entities. Launched in December 2016, it holds over 1,400 bonds with an average yield of approximately 5.7%, effective duration of 6.2 years, and an investment-grade tilted credit profile dominated by BBB-rated securities. Key country exposures include Saudi Arabia (10.6%), Mexico (8.5%), United Arab Emirates (7.5%), China (6.3%), and Indonesia (5.7%), alongside significant allocations to issuers like Argentine Republic Government bonds and Petroleos Mexicanos. This distributing ETF pays monthly dividends, reflecting its income-oriented design with a recent yield around 6.12%, and maintains a low total expense ratio of 0.23%. In the fixed-income landscape, it provides diversified access to emerging markets sovereign and quasi-sovereign debt, emphasizing USD-denominated instruments to mitigate local currency volatility while capturing yield premiums from higher-risk geographies.