New Vanguard fixed income models are now available

We continue to enhance our suite of fixed income models with two new portfolios, each tailored to meet specific client needs. These new models complement our existing fixed income solutions.

See how these models may fit within your clients’ portfolios:

Risk Diversification Tax-Aware Model

Use this model for clients who are concerned about volatility and spending down their principal. They should be comfortable with lower potential returns from fixed income in exchange for a hedge against equity market downturns. This portfolio pairs high-quality bonds with traditional equities or separately managed accounts and has a secondary objective to minimize tax consequences.

Talking to clients

Using this model, you can address client anxieties by emphasizing that high-quality fixed income investments, such as Treasuries, core bond, and mortgage-backed securities, often move in the opposite direction of equities when the stock market sells off.

Reassure clients that their goals can still be within reach because they prepared for equity market downturn scenarios.

Possible allocations:

Notes: Portfolio weights, as of October 2025.

Income-Focused Model

Use this model for clients who need income to meet their spending needs. We accomplish this by allocating assets to bond funds with greater credit exposure. This can include diversified active bond funds, emerging markets, high-yield, and active multi-sector, among others.

Talking to clients

Clients should be reassured that having a steady income stream in the portfolio can relieve the pressure of having to sell equities to fund spending. Make sure clients understand that the opportunity to generate more income comes with the possibility of higher variable returns.

Possible allocations:

Notes: Portfolio weights, as of October 2025.

Why use model portfolios? They can help you:

Save time
Spend less time on investment selection, due diligence, and administrative tasks while leveraging insights from some of the world’s leading portfolio construction and management experts.

Boost client value and retention
Deepen your client relationships by using the time you save to talk with clients about their ever-changing financial goals.

Grow your business
Onboard new clients more quickly and easily. Leverage models as a partial solution for more established clients with complex planning needs.

Increase the value of your practice
Moving client assets into model portfolios with a more uniform investment process helps to boost the value of your practice. 

For more information about Vanguard funds or Vanguard ETFs, visit advisors.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. Diversification does not ensure a profit or protect against a loss.

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.

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. 

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.

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

Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax.

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.

Vanguard does not, and will not, make any representations about whether a model portfolio is in the best interest of any investor, is not, and will not be, responsible for the determination of whether a model portfolio is in the best interests of any investor, and is not acting as an investment advisor to any investor. It is the investment advisor's responsibility to determine the appropriateness of the model portfolios, or any of the securities included therein, for any client.

The Vanguard model portfolios are provided for illustrative and educational purposes only. The Vanguard model portfolios do not constitute research, are not personalized investment advice or an investment recommendation from Vanguard to any client of a third party financial professional and are intended for use only by a third party financial professional, with other information, as a resource to help build a portfolio or as an input in the development of investment advice for its own clients. Such financial professionals are responsible for making their own independent judgment as to how to use the Vanguard model portfolios.