Vanguard Launches Global Government Bond ETF, Expanding Fixed-Income Options For European Investors

Vanguard has launched a new fixed-income ETF, giving investors the chance to diversify bond portfolios at a global level. The Vanguard Global Government Bond UCITS ETF is intended to be a core holding, offering exposure to a broad selection of developed-market government bonds.

The ETF will be traded on leading European stock exchanges, such as the London Stock Exchange, Deutsche Börse, Borsa Italiana, Euronext Amsterdam, and SIX Swiss Exchange. This wide coverage makes it easily accessible to investors in the UK and Continental Europe.

Mark Fitzgerald, Vanguard Europe’s head of product specialism, emphasizes the need for global diversification in fixed-income investing.

“Investors are often tempted to invest locally when it comes to fixed income, largely out of familiarity. However, the added diversity of a global government bond allocation can reduce the risk of an investor's fixed income portfolio, without necessarily decreasing the expected returns, provided the currency risk is hedged. By adding global government bonds, investors gain exposure to a greater number of securities, different inflation and economic environments, as well as business cycles from a wider range of markets,” Fitzgerald said.

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Tracking A Global Index

The new ETF will aim to replicate the Bloomberg Global Treasury Developed Countries Float Adjusted Index, allowing investors to have exposure to a wide range of government bonds from developed economies. This is in line with Vanguard’s wider UCITS range, providing investors with an affordable method of accessing diversified fixed income assets.

The release of this ETF is timely, as the European ETF market is recording strong growth. Assets in the European ETF market stood at an all-time high of $2.41 trillion as of February 2025, according to ETFGI, a prominent independent research and consulting firm.

Vanguard continues to draw considerable investor attention for its ETF products. Particularly, three of its UCITS ETFs were listed among the top 10 most popular ETFs receiving the largest inflows during February:

• Vanguard FTSE All-World UCITS ETF: $879.57 million
• Vanguard S&P 500 UCITS ETF: $866.53 million
• Vanguard EUR Corporate Bond UCITS ETF: $712.39 million

With the introduction of the Vanguard Global Government Bond UCITS ETF, Vanguard is reaffirming its pledge to offer investors diversified and resilient fixed-income strategies. With ETF demand continuing to grow, especially in Europe, this new fund is poised to be an important part of investors’ portfolios.

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