Vanguard Multi-Sector Income Bond ETF
Income enhancement and diversifying exposure to complement a core fixed income portfolio.
Why multisector bond ETFs?
Multisector bond ETFs offer diversified exposure to higher income producing fixed income sectors. Active management allows for professional manager discretion in significant sector allocation and security selection decisions.
Key characteristics of multisector bond portfolios
What makes Vanguard Multi-Sector Income Bond ETF (VGMS) unique?
Clear design
The ETF focuses on four key credit sectors: investment grade, high yield, emerging markets, and structured products. Its custom benchmark reflects these allocations, offering a transparent lens into the funds performance.
Low cost and smart risk-taking
A low expense ratio allows the management team to be opportunistic when seeking to maximize return and yield instead of taking undue risk to overcome a high fee hurdle.
Performance
VGMS seeks to outperform its benchmark through disciplined security selection and sector rotation.
Approximate sector exposures
Where VGMS may fit in a diversified portfolio
VGMS can meet the needs of clients particularly those in or approaching retirement who are seeking greater income generation and improved total return outcomes. VGMS is designed for investors who:
- Are looking for a complement to an already diversified fixed income portfolio.
- Have a higher risk tolerance and seek greater income and return potential through exposure to investment grade, high-yield, emerging markets, and structured products fixed income sectors—four areas of the market where Vanguard has demonstrated expertise
- Want exposure to income-producing sectors managed by a trusted leader in asset allocation.
A core-satellite approach
A leader in fixed income investing
Vanguard Fixed Income Group is among the world's largest bond fund managers, overseeing more than $400 billion1 in actively managed fixed income funds.
Exceptional talent
Vanguard's team of about 100 investment professionals has been managing active fixed income for over 40 years.
Disciplined approach
Our collaborative, time tested investment process facilitates our goal to deliver diversified sources of alpha. Risk managers are a part of every portfolio management team and are involved in every step of the portfolio construction and management process.
True to label
Vanguard seeks outperformance while staying true to the character and objective of each fund. Vanguard funds behave like the asset classes they represent with similar risk profiles so clients know what to expect in varying market environments.
Notes: For the 10-year period, 44 of 48 Vanguard active bond funds outperformed their peer group averages. Results will vary for other time periods. Only funds with a minimum 10-year history were included in the comparison.
Sources: LSEG Lipper, as of June 30, 2025. 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 vanguard.com/performance.
Meet the team
The Vanguard Multi-Sector Income Bond ETF management team brings a collective 70 years of industry experience to the table.
Michael Chang, CFA
Senior portfolio manager and co head of the Vanguard U.S. High Yield Corporate Debt Team. Member of the Global Credit Team. Formerly a portfolio manager for the Goldman Sachs High Yield Floating Rate Fund and head of bank loan trading for Goldman Sachs Asset Management. Twenty five years of industry experience.
Daniel Shaykevich
Principal, senior portfolio manager, and co head of the Vanguard Emerging Markets and Sovereign Debt Team. Member of the Global Credit Team. Formerly a portfolio manager and risk manager at BlackRock. Twenty four years of industry experience.
Arvind Narayanan, CFA
Senior portfolio manager and co head of the Vanguard Investment Grade Corporate Debt Team. Member of the Vanguard Global Credit Team. Formerly a managing director at State Street Global Advisors and senior vice president at GE Asset Management. Twenty three years of industry experience.
Fixed income investments
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Disclosures and footnotes
1 As of June 30, 2025.
For more information about Vanguard funds and 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.
Vanguard Multi-Sector Income Bond ETF is not to be confused with the similarly named Vanguard Multi-Sector Income Bond Fund. These products are independent of one another. Differences in scale, certain investment processes, and underlying holdings between the ETF and its mutual fund counterpart are expected to produce different investment returns by the products.
All investing is subject to risk, including the possible loss of the money you invest.
Diversification does not ensure a profit or protect against a loss.
Please remember that all investments involve some risk. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.
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.
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