Just noticed something interesting in the bond fund space. The Vanguard emerging markets government bond fund (VWOB) has been crushing it lately compared to the usual suspects like BNDX and BND over the past year. If you're looking for best international bond funds that actually deliver returns, this one's caught attention.

But here's the thing - higher yields always come with a catch. About 41% of VWOB's holdings are speculative-grade bonds, which is a pretty meaningful chunk of risk. Compare that to traditional U.S. bond funds where most holdings are investment-grade, and you see the tradeoff pretty clearly.

The fund gives you exposure to government debt from emerging markets - Saudi Arabia, Mexico, Turkey, Indonesia, that tier of countries. The yields are definitely attractive if you can stomach the volatility. VWOB's delivered 11.6% over the past year, which beats most traditional bond allocations.

If you want best international bond funds but with lower risk, BNDX is probably the move - it's got 6,600+ bonds globally with only 7.5% in emerging markets. You get some of that emerging market upside without going all-in.

The real question: how much extra risk are you comfortable taking for those higher yields? Emerging market bonds can swing harder and don't have the safety net of developed economy backing. Worth thinking through before you load up.