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The new reality of international bonds

October 14, 2013

The infographic below shows how international fixed income instruments have grown to become the largest investable asset class—larger than domestic stocks, international stocks, and domestic bonds. Vanguard believes that foreign bonds can diversify a traditional portfolio in much the same way that foreign stocks do, by helping to offset the risks presented by U.S.-based investments.

Does your portfolio's asset allocation reflect the important role foreign bonds play in the marketplace? To find out, log on to and view a domestic/international breakdown of your bond holdings.

International bonds


  • All investing is subject to risk, including possible loss of the money you invest.
  • Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. Investments in bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. Bonds of companies based in emerging markets are subject to national and regional political and economic risks. These risks are especially high in emerging markets.
  • Diversification does not ensure a profit or protect against a loss.
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