If you’re feeling uneasy about the economy due to recent oil price shocks, or are concerned that U.S. tech stock valuations are too high, buying bonds can be a good way to diversify your portfolio. But if you want to invest in international bonds, it’s important to understand the risks.
One easy way to buy international bonds is to choose the Vanguard Total International Bond Market ETF (BNDX 0.15%). This bond ETF has delivered 5.4% average annual returns (by net asset value) for the past three years. If you want even higher yields on your bonds, you could consider the Vanguard Emerging Markets Government Bond ETF (VWOB 0.22%).
Let’s look at these two international bond ETFs and see which fund might be better for your investment goals.
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VWOB: Invest in emerging market government debt
The Vanguard Emerging Markets Government Bond ETF is an international…
