Vanguard’s VWOB has delivered 9.65% annualized returns over three years, outperforming domestic bond ETFs amid shifting stock-bond correlations.
The Vanguard Emerging Markets Government Bond ETF (VWOB) has posted 9.65% annualized returns over the past three years, outpacing U.S. bond ETFs like BND. The fund holds 923 bonds across 65 countries, offering diversification beyond domestic debt markets.
Bond-stock correlations have turned positive since 2020, reducing bonds’ traditional safe-haven appeal. Rising global debt issuance has pressured bond prices, prompting investors to seek higher yields in emerging markets. VWOB’s performance reflects this shift in demand.
Analysts suggest the trend may persist as central banks navigate inflation and debt sustainability. The fund’s 0.20% expense ratio remains competitive for international exposure.