Forbes article showcases Vanguard’s growing presence in active fixed income investing

Vanguard’s expanding suite of actively managed fixed income funds and ETFs was featured in Forbes.com on September 30, 2025. The article, “Why Index Fund Giant Vanguard Is Pushing Actively Managed Bond Funds,” highlights how Vanguard has launched four active bond ETFs in 2025 alone, bringing the total to nine since the first launch in 2021. This expansion reflects our commitment to providing advisors with a robust lineup of solutions designed to help meet client needs in today’s evolving market environment. Michael Chang, Vanguard senior portfolio manager, explains that the fragmented and less liquid nature of fixed income presents opportunities for a skilled active management team to add value.

“The fixed income market, certainly relative to the equity market, is much more complicated, oftentimes much more inefficient, and certainly less liquid,” Mr. Chang said. “That's the type of environment where if you know what you're doing, there's potentially a lot more value to be added via active management.”

As interest rate dynamics evolve and equity valuations remain elevated, Vanguard’s expanded active bond lineup—combined with advisors’ expertise—can help clients achieve their investment goals.

 

Learn more about our active fixed income ETFs:

Vanguard High-Yield Active ETF (VGHY)

Vanguard Government Securities Active ETF (VGVT)

Vanguard Multi-Sector Income Bond ETF (VGMS)

Vanguard Short Duration Bond ETF (VSDB)

Vanguard Core Tax-Exempt Bond ETF (VCRM)

Vanguard Short Duration Tax-Exempt Bond ETF (VSDM)

Vanguard Core Bond ETF (VCRB)

Vanguard Core-Plus Bond ETF (VPLS)

 

Disclosures

For the 10-year period ended September 30, 2025, these percentages of Vanguard active funds outperformed their peer group averages: 100% of money market funds (6 of 6), 85% of bond funds (41 of 48), 100% of balanced funds (5 of 5), and 85% of stock funds (33 of 39); results will vary for other time periods. Only funds with a minimum 10-year history were included in the comparisons. (Source: LSEG Lipper) Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at www.vanguard.com/performance. 

Multi-Sector Income Bond Fund Admiral™ Shares (VMSAX) standardized performance: Quarter: 2.42%; YTD: 7.29%; 1yr: 6.27%; 3yr: 9.66%; and since inception: 3.25% (since inception date 10/21/2021). Expense ratio 0.30% as of 09/30/2025. The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. See performance data current to the most recent month-end.

For more information about Vanguard funds or Vanguard ETFs®, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

All investing is subject to risk, including possible loss of principal.

Past performance is no guarantee of future results.

Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.

Investments in bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

Bonds of companies based in emerging markets are subject to national and regional political and economic risks and to the risk of currency fluctuations. These risks are especially high in emerging markets.

High-yield bonds generally have medium- and lower-range credit-quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit-quality ratings.

U.S. government backing of Treasury or agency securities applies only to the underlying securities and does not prevent share price fluctuations. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest.

Municipal bond fund distributions, including any market discount recognized by the Fund's investments, may be taxable as ordinary income or capital gains. A majority of the income dividends that you receive from the Fund are expected to be exempt from federal income taxes. However, a portion of the Fund’s distributions may be subject to federal, state, or local income taxes or the federal alternative minimum tax. You should consult your own tax advisor with respect to any particular U.S. or non-U.S. tax consequences of your investment in the Fund.