VALLEY FORGE, PA — The Vanguard Group recently launched a suite of bond-ladder model portfolios built with its Target Maturity Corporate Bond exchange-traded funds to provide fixed-income allocation tools for financial advisors.
The portfolios use Vanguard’s BondBuilder target maturity ETFs, a lineup of 10 index funds designed to offer defined maturity exposure within an exchange-traded format.
The firm will offer four model portfolios with maturity ranges of 0–3, 0–5, 0–7 and 0–10 years, structured as perpetual bond ladders.
Each portfolio allocates assets across ETFs representing successive maturity years and rebalances by shifting proceeds from maturing holdings into longer-dated funds to maintain the ladder structure.
The portfolios are designed to manage interest rate and credit risk while providing diversification and liquidity through ETF holdings.
“Intuitive and scalable fixed income portfolio construction through target maturity ETFs allows advisors to focus more time on improving client outcomes,” said Amma Boateng, managing director of Financial Advisor Services at Vanguard.
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