Vanguard launches VGMS—a new multi sector income bond ETF

Introducing Vanguard Multi-Sector Income Bond ETF (VGMS) —the latest addition to our suite of fixed income ETFs. VGMS seeks to provide total return while generating a moderate-to-high level of current income. With an estimated expense ratio of just 0.30%, this actively managed ETF seeks to outperform the Multisector Income Composite Index. The ETF seeks to provide exposure primarily to U.S. investment-grade securities, U.S. high-yield corporate securities, emerging markets debt of all credit quality ratings, and structured products.

Vanguard’s actively managed fixed income funds follow a portfolio-manager-driven process that uses both top-down and bottom-up inputs. Portfolio managers are responsible for portfolio construction and strategy, leveraging the top-down insights of the Senior Investment Committee and Vanguard’s Investment Strategy Group, the bottom-up insights of the sector teams, and the relative-value views across fixed income sectors. Risk optimization measures are present throughout the investment process.

Designed to help clients achieve their long-term investment goals, VGMS can be a strategic addition to a well-diversified portfolio.

Vanguard Fixed Income Group

Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world’s largest equity and fixed income managers. Serving as Chief Investment Officer, Gregory Davis, CFA, oversees Vanguard’s Equity Index, Investment Strategy, Quantitative Equity, and Fixed Income Groups. Sara Devereux, principal and global head of Fixed Income Group, has direct oversight responsibility for all money market, bond, and stable value portfolios managed by the Fixed Income Group. The Fixed Income Group offers actively managed investments in U.S. Treasury, corporate, and tax-exempt securities, as well as passively managed index portfolios. Since 1981, its refined techniques in total-return management, credit research, and index sampling to seek to deliver consistent performance with transparency and risk control.

Notes:

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.

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. 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.

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.

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