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December 07, 2023 at 12:33 PM
Vanguard on Thursday introduced two new actively managed bond exchange-traded funds, launching Vanguard Core-Plus Bond ETF (VPLS) and announcing that Vanguard Core Bond ETF (VCRB) will open before year-end.
The new ETFs offer broadly diversified fixed income exposure with low equity correlation and the potential to outperform broad bond benchmarks over the long term, the mutual fund giant said.
“Vanguard Core Bond ETF and Vanguard Core-Plus Bond ETF offer clients diversified single-fund fixed income portfolios offering exposure to a range of sectors, qualities, and maturities,” said Sara Devereux, global head of Vanguard Fixed Income Group. Offering the strategies through the the ETF structure meets clients’ growing preference for ETFs, she said.
While Vanguard has offered investors core bond and core-plus bond mutual fund strategies since 2016 and 2021 respectively, the new ETFs will be distinct from the existing mutual fund products, the company said.
The Vanguard Core-Plus Bond ETF offers exposure mostly to U.S. investment-grade securities but will have flexibility to add allocations in sectors beyond the U.S. investment-grade bond market, such as U.S. high-yield corporates and emerging markets debt.
