Vanguard on Tuesday announced four model portfolios built using Vanguard Target Maturity Corporate Bond ETFs, or TMEs, a lineup of 10 index exchange-traded funds designed to help investors build more precise and custom fixed income portfolios.
"Financial advisors are being asked to deliver more personalized outcomes with greater efficiency," said Amma Boateng, managing director, Financial Advisor Services. "Intuitive and scalable fixed income portfolio construction through target maturity ETFs allows advisors to focus more time on improving client outcomes."
Each of the four perpetual TME-based bond ladder model portfolios aims to help investors manage interest-rate and credit risk, Vanguard said.
"BondBuilder model portfolios are another way we're putting Vanguard's fixed income expertise to work for advisors — reducing operational complexity while helping them deliver better outcomes to more investors," said Eve Cout, advisor solutions head, Financial Advisor Services.
Vanguard will offer four TME bond ladder model portfolios spanning different maturity ranges. They offer the diversification, liquidity and trading efficiency of ETFs with the defined maturities traditionally associated with individual bonds, Vanguard said.
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