Bringing you live news and features since 2006 

Vanguard expands active fixed-income fund line-up

RELATED TOPICS​

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

BlackRock’s global ETP flows report for June finds a steady rise with USD128.1 billion added to global ETPs in June,..
Morningstar’s global ETF flows report for the first half of 2024 shows that actively managed ETFs have captured 25 per..
The surge in bitcoin ETF launches and funds flowing into the sector is transforming institutional investment in digital assets but..
LSEG Lipper’s latest research finds that the majority of actively managed funds and ETFs globally were not able to beat..

Related Articles

Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Andrea Busi, Directa SIM
Romain Thomas talks to Andrea Busi (pictured), CEO of Directa SIM, who explains why the online trading platform has just...
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