On Wednesday, Vanguard expanded its fixed income ETF selection with the launch of three new funds.
For folks looking to outperform the Treasury market, the Vanguard Government Securities Active ETF (VGVT) may be an attractive new option. With a focus on intermediate duration, the fund tactically invests in government securities across a vast swath of maturities. Despite being actively managed, the fund has a relatively low expense ratio of 10 basis points.
“The actively managed VGVT leverages our fixed income expertise to deliver a flexible, high-quality portfolio of U.S. government and agency bonds, along with select securitized credit,” noted Roger Hallam, global head of rates, Vanguard Fixed Income Group. “VGVT is built to serve as a resilient core bond holding—one that adapts to changing market conditions while preserving the diversification and risk-buffering qualities investors expect from Treasuries. It’s a compelling option for those seeking to balance equity exposure and pursue long-term portfolio stability through active management.”
Indexed Options
Meanwhile, the Vanguard Total Treasury ETF (VTG) takes a passive approach to fixed income. Tracking the Bloomberg U.S. Treasury Total Return Unhedged USD Index, the fund thus offers a broad, diversified approach to U.S. Treasuries. The fund currently has a significantly low expense ratio of 0.03%.
Last on the docket is the Vanguard Total Inflation-Protected Securities ETF (VTP). Also a passive offering, this fund looks to distinguish itself by focusing on inflation-protected securities. This fund’s expense ratio sits at 5 basis points.
Vanguard's Expanding Library
These new funds come to market as Vanguard continues to expand its collection of fixed income offerings. Just last month, Vanguard launched the Vanguard Multi-Sector Income Bond ETF (VGMS).
“Vanguard has recently focused on building out an already-strong fixed income ETF lineup with a mix of actively managed and index-based strategies,” said Todd Rosenbluth, head of research at VettaFi. “Demand for fixed income ETFs has never been stronger, and many advisors are benefiting from the scale and expertise Vanguard is well-positioned to deliver.”
Vanguard currently offers a number of compelling ETF solutions for the broader investment community. This includes the Vanguard Core Plus Bond ETF (VPLS ), which has more than $600 million in assets under management.
For more news, information, and analysis, visit the Fixed Income Content Hub.
