AFI why active now


Turn opportunity into action

Pursue greater returns for clients with expert managers and a low-cost advantage

Why now?

Why now?

Clients expect more. Active fixed income can help you deliver.

Recent market conditions have ushered in a new era of high yields in which bonds offer significantly more value in a client’s portfolio. Our active fixed income managers seek to parlay times like these into opportunities for your clients. They do extensive research and leverage their expertise to find investments positioned to offer safety and strong total returns within a portfolio.

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. We believe the current rate hike cycle is 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.

SEE MORE: We have a fund lineup built for this moment. ›


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 from a diverse set of high information ratio strategies 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.

Bond funds outperformance

5 year 10 year graph representing bond funds outperformance

Note: Data as of September 30, 2023. For the three-year period, 30 of 54 bond funds outperformed their peer-group averages. For the five-year period, 44 of 52 bond funds outperformed their peer-group averages. For the 10-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 10-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 Active Fixed Income

Discover how our active fixed income products are built for 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 overreliance on 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.

Fund management chart categorizing the drivers for each fund, so you know what to expect

Have questions about active fixed income? Contact us.

See fund performance, expense ratio, and more right here

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.