Vanguard plans to introduce an actively managed fixed-income ETF, Vanguard Short Duration Bond ETF (VSDB), in early April.
The mutual fund giant's fixed income group will managed the ETF, which is designed to provide investors with current income and lower price volatility consistent with short-duration bonds.
Dan Reyes, who heads Vanguard's portfolio review department, said the ETF "adds to our growing suite of actively managed fixed income ETFs and offers investors the potential to outperform the market within their short-term fixed income allocations.”
VSDB, with an estimated 0.15% expense ratio, will offer diversified exposure to short-duration U.S. investment-grade bonds, including some exposure to structured products, such as asset-backed securities, with the flexibility to invest in below investment-grade debt and emerging markets to seek additional yield.
Vanguard says 95% of its active fixed income funds outperformed their peer group averages over the past decade. Its fixed income team oversees more than $2.4 trillion in global assets under management.
Image: Bloomberg
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