VALLEY FORGE, PA — Vanguard has expanded its fixed income offerings with the launch of the Vanguard Multi-Sector Income Bond ETF (VGMS), an actively managed exchange-traded fund designed to deliver potential total returns and higher income for investors. The ETF, managed by Vanguard Fixed Income Group, provides access to a broad range of fixed income sectors, including investment-grade credit, high-yield corporate bonds, emerging market debt, and structured products.
“VGMS seamlessly integrates institutional-grade active investment strategies with Vanguard’s hallmark of low-cost leadership, delivering a powerful and differentiated solution for advisors and investors navigating today’s complex and fast-evolving markets,” said Sara Devereux, Global Head of Vanguard Fixed Income Group.
With an estimated expense ratio of 0.30%, VGMS offers a cost advantage of 0.18% compared to the asset-weighted category average, making it a competitive addition to Vanguard’s suite of fixed income ETFs. The fund is the company’s seventh actively managed fixed income ETF in the United States and is overseen by a team of experienced portfolio managers, including Michael Chang, Arvind Narayanan, and Daniel Shaykevich, who each have over two decades of expertise in fixed income portfolio management.
“Active fixed income ETFs are increasingly favored by advisors and clients for their low costs, tax efficiency, and potential to add diversification and alpha to portfolios,” said Amma Boateng, managing director and head of Vanguard Financial Advisor Services. “VGMS pairs these features of an ETF with Vanguard’s experienced team and proven process to seek outperformance in higher-yielding sectors of the bond market.”
Vanguard’s launch of VGMS underscores its commitment to innovation and delivering low-cost, actively managed solutions tailored to meet the evolving needs of modern investors.
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