ACTIVE FIXED INCOME

Active Fixed Income: Turn opportunity into action

The partner you need to help clients withstand wavering markets

Why now?

Leverage active fixed income in your clients' portfolios

Will inflation be tamed? Will market volatility wane? Will the Fed keep raising rates? You’ve undoubtedly gotten bombarded with these questions – and more – from your clients.

The reality is volatility and market events will continue in the months ahead, but opportunities are hiding in plain sight. With the current rate hike cycle nearing its end, now may be the time to take advantage of active fixed income. We have a fund lineup built for this moment. One that can help your clients maneuver through the volatility toward alpha.

Top-down economic views, bottom-up sector analysis. With a track record of consistent outperformance

Sara Devereux
Global Head of Fixed Income Group

Built for performance

Vanguard active fixed income funds outperformed peer-group averages in multiple time periods

Our active fixed income teams seek to outperform by constructing portfolios that revolve around compounding sources of alpha that are repeatable and scalable rather than relying on concentrated risk positions. Active management can outperform—given the right combination of talent, discipline, and incentives strictly aligned with our clients. And we have that in spades. That's the value of ownership.*

As an advisor, you look out for your clients. We look out for both of you. Our investors are our owners, so we build our active funds with their interests and goals in mind.

92%

5 years

95%

10 years

Note: Data as of June 30, 2023. For the three-year period, 33 of 54 bond funds outperformed their peer-group averages. For the five-year period, 48 of 52 bond funds outperformed their peer-group averages. For the ten-year period 42 of 44 bond funds outperformed their peer-group averages. Results will vary for other time periods. Only funds with a minimum three-, five-, or ten-year history, respectively, were included in the comparison.

Source: Lipper, a Thomson Reuters Company

Note that the competitive performance data shown represents 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.

Process and philosophy

Diversified sources of alpha that are repeatable and scalable

Our deeply specialized yet collaborative team-based approach reduces sector bias and improves relative value decisions.

Smart risk-taking discipline, strengthened by modest fees

Our low-cost advantage limits the need for top-down directional risk and helps reduce the probability of large losses.¹ And it allows us to focus on our highest conviction strategies.

True-to-label fund management

We thoughtfully define the opportunity set for key risk and return drivers for each fund, so you know what to expect.

Vanguard Active Fixed Income

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Disclosures and footnotes

1 Note: Vanguard calculations, based on data from Morningstar, Inc., as of December 31, 2022, show that Vanguard active fixed income funds had an average asset-weighted expense ratio of 0.11%, compared with an average asset-weighted expense ratio of 0.55% for non-Vanguard active fixed income funds.

For more information about Vanguard funds or Vanguard ETFs, view detailed product information or call 800-997-2798 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.

All investments, are subject to risk, including the possible loss of the money you invest.

Diversification does not ensure a profit or protect against a loss.

Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to decline.

*Vanguard is owned by its funds, which are owned by Vanguard’s fund shareholder clients.