Vanguard Expanding its Footprint in Active Fixed-Income Investments with New Bond ETFs
Vanguard, a powerhouse in the investment management industry, is set to launch two new active fixed-income exchange-traded funds (ETFs) to further diversify its offerings. The Vanguard Core Bond ETF (VCRB) and Vanguard Core-Plus Bond ETF (VPLS) will soon join Vanguard’s extensive portfolio, managed by its renowned Vanguard Fixed Income Group. These additions are slated for a year-end launch, aiming to provide investors with efficient and cost-effective access to active fixed-income strategies.
Advancing the Active Fixed-Income Landscape
As an industry leader with over four decades of experience, Vanguard has consistently delivered robust investment outcomes in the active fixed-income space. Now, with the introduction of these two new ETFs, the company seeks to extend its legacy by combining its seasoned investment talent with the flexibility and convenience offered by ETFs.
A Bridge to Diversification
Vanguard Core Bond ETF and Core-Plus Bond ETF are designed to serve as comprehensive, single-fund fixed-income solutions. They offer broad diversification across various sectors, credit qualities, and maturities. These active mandates empower portfolio managers to seek optimal opportunities while maintaining a vigilant eye on risk.
- Vanguard Core Bond ETF: This ETF will primarily focus on U.S. investment-grade securities while making modest allocations to more risk-prone sectors like U.S. high-yield corporates and emerging markets.
- Vanguard Core-Plus Bond ETF: While sharing a similar construction, this ETF will possess greater flexibility to increase allocations in both U.S. high-yield corporates and emerging markets.
Investors will be pleased to find that Vanguard’s commitment to cost-effective investing continues with these new offerings. Vanguard Core Bond ETF will have an estimated expense ratio of just 0.10%, while Vanguard Core-Plus Bond ETF will come in at 0.20%.
A Legacy of Expertise
For over four decades, Vanguard Fixed Income Group has stood out with its profound investment capabilities, disciplined security selection processes, and rigorous risk management strategies. The group is globally recognized as the largest manager of bond mutual funds and ETFs, overseeing a staggering $2.1 trillion in assets. With 192 investment professionals around the world, Vanguard Fixed Income Group’s track record speaks for itself—95% of Vanguard active bond funds have outperformed their peer group averages over the past decade ending June 30, 2023.
Since its inception in 1975, Vanguard has solidified its position as one of the world’s premier investment management firms. The company offers a wide range of investments, advisory services, and retirement solutions to individual investors, institutions, and financial professionals. Vanguard’s unique investor-owned structure reflects its core mission: to champion the interests of all investors, provide them with equitable treatment, and offer them the best prospects for investment success.
All data as of August 31, 2023, unless otherwise specified.
For the ten-year period ending June 30, 2023, 42 out of 44 Vanguard active bond funds have surpassed their peer group averages; results may vary for other time frames. (Source: Lipper, a Thomson Reuters Company) Please note that past performance data represents historical results, which do not guarantee future outcomes, and all investments are subject to inherent risks. For the most up-to-date performance figures, please visit our website at www.vanguard.com/performance.
Please note that Vanguard Core Bond ETF and Vanguard Core-Plus Bond ETF should not be confused with similarly named Vanguard Core Bond Fund and Vanguard Core-Plus Bond Fund. These products are distinct from one another, with differences in scale, certain investment processes, and underlying holdings, which are likely to result in varying investment returns. To request a prospectus for Vanguard Core Bond Fund or Vanguard Core-Plus Bond Fund, please call 800-662-7447.