Bloomberg interview with Rebecca Venter on Vanguard High-Yield Active ETF (VGHY)

Vanguard’s new High-Yield Active ETF (VGHY) was the focus of a recent Bloomberg TV appearance by Senior Fixed Income Product Manager Rebecca Venter. Hear her describe how the team navigates the full spectrum of the high-yield market in pursuit of outperformance. The team’s dogged yet disciplined approach to risk, she explained, helps position Vanguard’s active bond funds to outperform over time, particularly in a tight-credit-spread environment.

“Active can be really powerful because our team [can] look under the surface—even if the index is trading pretty tight,” Venter said. “They find the [issuers] they like and those that may be at more risk. That’s what our team is focused on now: driving value from individual security selection.”

Disclosures

For more information about Vanguard funds or Vanguard ETFs, visit advisors.vanguard.com 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.

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.

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.