Vanguard Emerging Markets Government Bond ETF

VWOB

Market cap $5.68B

Vanguard is a favorite for many investors, thanks to its wide portfolio of index funds with very low expenses.

Looking for consistent income in retirement beyond Social Security? Need more frequent payouts than the quarterly dividends that come from many stocks and exchange-traded funds (ETFs)?

If you're hunting for yield in 2026, emerging market bonds just became more interesting.

Chicago-based GP Brinson Investments bought 50,100 shares of VWOB in the fourth quarter, with an estimated trade value of $3.38 million based on quarterly average pricing. The quarter-end position value rose by $3.42 million, reflecting both the share purchase and price movement.

Retirees hunting for monthly income often gravitate toward familiar dividend aristocrats or high-yield bond funds, but many are missing a compelling option hiding in plain sight.

With long end yields elevated, fixed income remains attractive across multiple segments. Rate cuts, corporate earnings, and stable credit markets are supportive to Vanguard's VGHY and VCIT.

The rate-cutting cycle is bringing more investors to international bonds to not only diversify, but gain attractive yields. That's especially the case when considering emerging markets (EM) debt.

EM bond ETFs like EMB, VWOB, and PCY might draw investor interest as high real yields and a weaker dollar lift emerging markets.

Dollar-denominated emerging market bonds offer some of the highest dividend yields in fixed-income markets today. VWOB is a simple index ETF focusing on these securities. It yields 5.9%, and has outperformed most bonds for several years.

The Vanguard Emerging Markets Government Bond ETF may be a mouthful, but it delivers a 5.7% yield with monthly distributions. The Vanguard Information Technology ETF has 45.6% of its portfolio concentrated in just three stocks.