Bringing you live news and features since 2006 

Vanguard expands active fixed-income fund line-up


Vanguard has added to its VUS-domiciled active fixed income fund offering with the addition of the Vanguard Emerging Markets Bond Fund. The new fund takes the range to 25 funds and complements the firm’s existing emerging markets bond index offering.

The new fund is designed to offer financial advisors and institutions the potential for additional diversification, along with potentially higher returns that can accompany the considerable volatility associated with emerging markets debt.
The fund’s investment advisor, Vanguard Fixed Income Group, seeks to outperform the JP Morgan EMBI Global Diversified Index by investing in a broadly diversified portfolio of debt issued by emerging market governments and government-owned enterprises, with a majority of its assets either denominated in, or hedged back to, the US dollar. Emerging market countries include countries whose economies and capital markets are less developed, which includes most countries except for Australia, Canada, Japan, New Zealand, the United States, the United Kingdom, and most European Monetary Union countries. The Fund also has the ability to invest, on a limited basis, in out-of-benchmark emerging market sectors, such as emerging market corporate bonds and local currency bonds. The Fund’s duration, a measure of interest rate risk, is expected to be within one year of its benchmark.
“Emerging market debt is a well-established asset class offering credit exposure and diversification that is complementary to corporate and high yield bonds,” says John Hollyer (pictured), global head of Vanguard Fixed Income Group. “The Fund provides investors with low-cost, broad exposure to emerging fixed income markets.” 
The Emerging Markets Bond Fund is among the lowest-cost actively managed funds in its category, with the Fund’s Investor and Admiral shares (VEMBX and VEGBX) featuring expense ratios of 0.60 per cent and 0.45 per cent, respectively.
The new actively managed fund serves as a complement to Vanguard’s corresponding index and ETF offering, Vanguard Emerging Markets Government Bond Index Fund, which was introduced in 2013. Investors now have a choice between both active and passive products that provide access to emerging market debt, which may be suitable to some investors based on their goals, preferences, and tolerance for risk.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by