VALLEY FORGE, PA — Vanguard has broadened its suite of fixed income model portfolios with the launch of two new offerings designed to give financial advisors greater flexibility in tailoring strategies to meet clients’ evolving income, preservation, and growth objectives.
The additions—Vanguard Fixed Income Capital Preservation and Vanguard Fixed Income Active Total Return—join the firm’s existing dynamic asset allocation models, reinforcing Vanguard’s commitment to supporting advisors with efficient, research-backed tools for fixed income management.
“Fixed income remains a cornerstone of a well-diversified portfolio,” said Amma Boateng, Managing Director of Financial Advisor Services at Vanguard. “With our newest launch of fixed income asset allocation models, we’re giving financial advisors the tools to manage this essential component with precision and efficiency.”
The Capital Preservation model is designed to prioritize stability, offering modest returns with minimal volatility. It targets clients focused on maintaining capital availability and mitigating risk in uncertain markets. Meanwhile, the Active Total Return model combines high-quality global bonds with high-yield instruments to pursue superior returns relative to a passive benchmark—catering to clients who are willing to accept greater volatility for potential performance gains.
These new models follow the May 2025 introduction of Vanguard’s initial fixed income model portfolios: Risk Diversification, which seeks to provide a counterbalance to equity market swings, and Total Return, built to support long-term capital growth.
Vanguard’s model portfolios are developed and managed by its Fixed Income Group, which oversees $2.6 trillion in assets as of June 30, 2025. The team is known for its disciplined approach to risk and cost control, a strategy that has helped 92% of Vanguard’s active fixed income funds outperform peer averages over the past decade.
By integrating this expertise into model portfolios, Vanguard aims to reduce the operational burden on financial advisors, enabling them to focus more on client relationships and strategic planning.
All of Vanguard’s model portfolios are designed to offer broad diversification, low costs, and high-quality management. Each is tailored for different investment horizons and risk profiles, helping advisors align their recommendations with individual client goals in a shifting market environment.
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