Vanguard has registered to launch on Dec. 2 the Core-Plus Bond Index ETF, which will aim to track the Bloomberg U.S. Universal Float Float Adjusted Index.
The fund will be the 11th bond ETF that Vanguard has launched in 2025, Jeff DeMaso, who edits the Independent Vanguard Adviser, said in a post last week.
"Think Total Bond Market ETF (BND) with an extra kick — about 10% in high-yield bonds. That small slice of junk bonds should boost returns over time, but it will also magnify losses when traders hit the panic button," DeMaso wrote.
Vanguard's actively managed Core-Plus Bond ETF (VPLS) used the same benchmark, the editor noted. "That sets up a man-versus-machine race — my money’s on Vanguard’s active bond managers, an underrated crew that rarely gets its due." On the other hand, the upcoming Core-Plus Bond Index ETF will be the better choice for investors seeking "one-stop, full-market bond exposure," DeMaso added.
The prospectus, which Vanguard filed with the Securities and Exchange Commission, didn't disclose fund expenses.
Fee-only financial planner Jon Luskin, Bogleheads Live podcast host and a board member at the John C. Bogle Center for Financial Literacy, questioned the need for the new fund in a post on X last week.
"Do we (does anyone) need that? Nah," he posted. "Can't understand why they keep launching these things when @iShares has much more useful products that Vanguard is competing with."
The IVA's DeMaso said the fund "will go head-to-head with iShares Core Total USD Bond Market ETF (IUSB)," which tracks the same index and charges 0.06%.
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