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Vanguard on Thursday launched two new actively managed bond exchange-traded funds, launching Vanguard Core-Plus Bond ETF (VPLS) and asserting that Vanguard Core Bond ETF (VCRB) will open earlier than year-end.
The brand new ETFs provide broadly diversified mounted revenue publicity with low fairness correlation and the potential to outperform broad bond benchmarks over the long run, the mutual fund large mentioned.
“Vanguard Core Bond ETF and Vanguard Core-Plus Bond ETF provide shoppers diversified single-fund mounted revenue portfolios providing publicity to a spread of sectors, qualities, and maturities,” mentioned Sara Devereux, international head of Vanguard Mounted Revenue Group. Providing the methods via the the ETF construction meets shoppers’ rising choice for ETFs, she mentioned.
Whereas Vanguard has supplied buyers core bond and core-plus bond mutual fund methods since 2016 and 2021 respectively, the brand new ETFs might be distinct from the prevailing mutual fund merchandise, the corporate mentioned.
The Vanguard Core-Plus Bond ETF provides publicity largely to U.S. investment-grade securities however can have flexibility so as to add allocations in sectors past the U.S. investment-grade bond market, reminiscent of U.S. high-yield corporates and rising markets debt.
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