We are launching a new bond fund in our lineup of fixed income products: Vanguard Core-Plus Bond Fund. Designed as an all-in-one bond solution for your overall portfolio, it has a conservative to moderate risk profile. You can use it as your sole bond holding or combine it with our other bond funds for a more customized balance of risk and return.
The fund will launch on October 25. However, you will have the opportunity to invest in it during the subscription period starting on or around October 12th.
Here’s how the new funding fits into our lineup – and can fit into your portfolio.
Vanguard wants to offer core-plus bond funds:
Our Fixed Income Group will follow the fund’s benchmark performance by investing in carefully selected taxable fixed-income securities, including high-yielding corporate and emerging markets. Over the past 10 years, more than 88% of our actively managed funds have performed better than their peer-group average. **
Explore our active strategies
For nearly a decade, Vanguard Fixed Income Group has been distinguished in the industry by its deep investment capabilities, streamlined security selection process, and rigorous risk management strategies. These experienced fund managers will want to actively monitor and adjust specific revenue allocations to meet changing market conditions.
Even with historic historic low interest rates, bonds still play an important role in your portfolio by helping to add stability to your asset mix. Our Core-Plus Bond Fund will invest in multiple areas of the fixed income market. As an active, diversified focal point of your fixed income allocation, it can add potential balance to your portfolio – albeit with the goal of higher yields.
Conservative to moderate risk profile
Different from core-plus bond funds Vanguard Core Bond Fund Especially by seeking higher performance through exposure to risky bonds such as high-yielding corporate and emerging markets. This is expected to lead to greater volatility of returns and deviations from its benchmark than core bond funds. As a fixed-income investor, consider how the high risk level of the fund matches your personal risk tolerance.
With an estimated cost ratio of 0.20% (admiral-shares) and 0.30% (investor-shares), the core-plus bond fund is expected to be less expensive than other funds in the department. The average asset-based expenditure ratio of the fund in the Morningstar Core-Plus Bond category was 0.48% as of June 30, 2021.
Read about our latest investment outlook
* The fund will try to outperform the Bloomberg Barclays US Universal Total Return Index.
** For a period of 10 years ending June 30, 2021, 7 Vanguard Money Market Funds 7, 44 Vanguard Bond Funds 39, 6 Vanguard Balanced Funds 6 and 37 Vanguard Stock Funds for a total of 83 Vanguard Funds have their Lipper Peer – Exceeds group average. Results will vary for other periods. Actively managed funds with a comparatively minimum 10 years history were included. Source: Lipper, a Thomson Reuters company. The competitive performance data displayed represents past performance, which is not a guarantee of future results. See the most recent fund performance
“Coming Soon: Vanguard Core-Plus Bond Fund”,