BNDX tracks the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged) and holds investment-grade government, corporate and securitized bonds issued outside the United States. Currency exposure is hedged to the US dollar, so returns mainly reflect foreign interest rates and credit rather than currency moves. Hedging has a cost that depends on the difference between US and foreign short-term interest rates. The fund is used to diversify bond holdings beyond US issuers.
