Vanguard to migrate $36bn Total Bond Market ETF to Nasdaq

Jun 26th, 2018 | By | Category: Fixed Income

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Vanguard has announced that it will migrate the $37 billion Vanguard Total Bond Market ETF (BND US) from NYSE Arca to Nasdaq in the latter part of next month.

Vanguard to transfer $36bn Total Bond Market ETF to Nasdaq

The Vanguard Total Bond Market ETF (BND US) is expected to transfer to Nasdaq on 26 July 2018.

The asset management giant stated that its decision to move BND to Nasdaq was to help achieve trading and liquidity synergies among its suite of total bond market ETFs.

BND tracks the Bloomberg Barclays US Aggregate Float Adjusted Index, representing a wide spectrum of investment-grade, taxable, fixed income securities in the US including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities.

Bonds with a maturity of more than one year are eligible for inclusion. The index, which is weighted by market value, has an effective duration of 6.1 years and is currently yielding 3.2%.

With an expense ratio of just 0.05%, BND offers a massive portfolio – over 10,000 issues – at a highly competitive cost.

The low-cost ETF provider recently filed a preliminary registration statement for the Vanguard Total World Bond ETF, which will invest primarily in two underlying ETFs, the Vanguard Total Bond Market ETF and Vanguard Total International Bond ETF (BNDX US).

BNDX is currently listed on Nasdaq and it is anticipated that the Vanguard Total World Bond ETF will also be listed on Nasdaq.

Vanguard also noted the benefit of diversity in the exchanges on which its ETFs trade. By maintaining ETFs across all three major US ETF exchanges, it seeks to mitigate operational risk and reduce exposure to potential exchange issues.

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