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Portfolio > Mutual Funds > Bond Funds

Vanguard to Launch 2 New Active Bond Funds

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Vanguard has filed registration statements for two new active fixed income funds: the Vanguard Core-Plus Bond Fund, to be introduced in the fourth quarter, and the Vanguard Multi-Sector Income Bond Fund, to be rolled out at a later date. 

If approved by the Securities and Exchange Commission, the core-plus bond fund would have an estimated expense ratio of 0.30% for Investor shares and 0.20% for Admiral shares, while the multi-sector fund would have an estimated expense ratio of 0.40% for Investor shares and 0.30% for Admiral shares.

According to Vanguard, the new funds aim “to meet the needs of clients seeking actively managed ‘core’ and ‘satellite’ bond portfolios” and represent the firm’s “ongoing efforts to improve investor outcomes through single-fund fixed income strategies with enduring investment merit and low costs.”

Vanguard’s new core-plus bond fund is set to invest in Treasury, mortgage-backed, and other U.S. investment-grade securities, as well as high-yield corporate securities and emerging markets debt of all credit quality ratings. 

Compared to the Vanguard Core Bond Fund, the new fund will be invested “across higher-alpha potential sectors, particularly in its greater exposure to high-yield and emerging markets,” the asset manager said in a statement.

The new multi-sector income fund will invest in U.S. investment-grade securities, U.S. high-yield corporate securities and emerging markets debt of all credit quality ratings. 

Vanguard currently manages some $8.0 trillion in global assets and 418 funds.

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