VALLEY FORGE, PA — Vanguard has expanded its suite of model portfolio solutions with the launch of two new dynamic asset allocation fixed income models designed for financial advisors. The additions—Vanguard Fixed Income – Risk Diversification Tax-Aware Model and Vanguard Fixed Income – Income Focused Model—reflect the firm’s continued effort to provide diversified, low-cost strategies that address a range of investor objectives.
“Fixed income continues to be a key component in helping investors achieve stability, generate income, and diversify their portfolios,” said Amma Boateng, Managing Director of Financial Advisor Services at Vanguard. “Our two new fixed income model portfolios are designed to address a variety of client needs, from income generation to tax management, while maintaining the disciplined and low-cost investment approach that defines Vanguard.”
The Risk Diversification Tax-Aware Model is intended for clients seeking risk mitigation and after-tax returns. The portfolio combines high-quality credit and municipal bond exposure and adjusts semi-annually based on forecasts from the Vanguard Capital Markets Model® (VCMM).
The Income Focused Model, meanwhile, targets investors seeking higher yields from their bond holdings. It maintains greater exposure to credit, emerging markets, and below-investment-grade bonds, with allocations updated quarterly according to VCMM outlooks.
These launches build on Vanguard’s earlier 2025 introductions of the Fixed Income Risk Diversification and Fixed Income Total Return models in April, and the Fixed Income Capital Preservation and Fixed Income Active Total Return models in July. Together, they form a more comprehensive fixed income model lineup aimed at helping advisors tailor portfolios to client needs.
Vanguard’s Fixed Income Group, which manages $2.7 trillion in assets as of August 31, 2025, has delivered consistent performance, with 85% of its active fixed income funds outperforming peer averages over the past decade. The company says this expertise—combined with its low-cost structure—now enables financial advisors to streamline portfolio construction and strengthen long-term client outcomes.
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