I invested in this ETF last year for international exposure; I also wanted Japanese exposure since they were getting hammered afer the tsunami. The fund invests in short term foreign bonds, namely Japan (18%), Germany (10%), France (8%), Italy (6%). Yield is around 5% but this is the worst performing investment in my portfolio (down 11% since purchase). I don’t know why the fund is down this much, since there’s minimal interest rate risk. 35% of the portfolio is unrated, are investors wary because of this fact? I feel like I don’t have the complete picture here.