Vanguard Total International Bond II Index Fund Investor Shares (VTIIX)

Vanguard Total International Bond II Index Fund Investor Shares is a passively managed mutual fund that tracks the Bloomberg Global Aggregate ex-USD Float-Adjusted RIC Capped Index, providing investors exposure to global investment-grade bonds denominated in currencies other than US dollars. The fund employs a sampling methodology to replicate its benchmark index while maintaining at least 80 percent of assets in bonds included within the index. It focuses on fixed-rate debt securities with at least one year to maturity, selected from markets across the world. The fund maintains conservative portfolio constraints, with no single issuer exceeding 25 percent of assets and aggregate weights of major issuers capped at 50 percent. Vanguard structures the fund to provide broad diversification across international bond markets while hedging currency exposure back to US dollars. With a low expense ratio and monthly dividend distributions, the fund serves investors seeking international fixed-income exposure with reduced foreign exchange risk. The fund holds over 7,000 individual securities and maintains a medium credit quality profile with moderate interest rate sensitivity.