Vanguard Launches Active Multi-Sector Bond Fund
The Vanguard Multi-Sector Income Bond Fund offers fixed income exposure across various sectors and credit qualities.
Vanguard announced Thursday that it has launched an actively managed fund, the Vanguard Multi-Sector Income Bond Fund, offering diversified exposure to fixed income credit sectors.
The fund, managed by Vanguard Fixed Income Group, takes a “flexible, risk-controlled approach,” seeking opportunities across various sectors and credit qualities, according to the mutual fund giant.
“Vanguard Multi-Sector Income Bond Fund provides investors access to our world-class fixed income investment talent through a low-cost strategy with high alpha potential,” said Sara Devereux, Vanguard Fixed Income Group’s global head. “We believe the fund can help clients meet their long-term investment objectives by serving as a complement to a well-diversified portfolio.”
While the fund can invest in a wide range of fixed income asset classes, it will focus primarily on U.S. high-yield corporate securities, U.S. investment-grade securities, and emerging markets debt of all credit quality ratings.
By appropriately weighting these three allocations within the fund’s custom benchmark, Vanguard said it aims to provide greater performance transparency than solely using a broad fixed-income benchmark.
The fund has an estimated expense ratio of 0.40% for Investor Shares and 0.30% for Admiral Shares, compared with an average expense ratio of 0.66% for industry peers, Vanguard said.
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