TAXABLE AND TAX-EXEMPT
Active Fixed Income
Diversify your clients' portfolios with active fixed income funds.
Helping your clients succeed over the long run
Consistent bond fund performance doesn't just happen. It takes analysis, and research.
To help your clients reach their goals, you can take advantage of our experts' rigorous and time-tested approach to active bond fund management.
You'll find our fixed income management team's approach can help your clients meet their goals. How? Start by seeing how we compare with our competition: 92% of Vanguard active bond funds outperformed their peer-group averages at 5 years and 82% of Vanguard active taxable bond funds were in the top quartile of peers at 3 years.1
This consistent outperformance is achieved through our long-term, sophisticated approach, smart risk-taking, and commitment to remain true-to-label. As a result, our funds can help provide income to your clients, improve risk-adjusted returns, and preserve capital. Moreover, with a 0.10% asset-weighted expense ratio—a fourth of the industry average—your client's money may go further.2
Compare bond funds
See how VCOBX Core Bond Fund stacks up against the competition.
1 For the one-year period, 48 out of 54 Vanguard active bond funds outperformed their peer-group averages. For the three-year period, 47 of 52 Vanguard active bond funds outperformed their peer-group averages. For the five-year period, 44 of 48 Vanguard active bond funds outperformed their peer-group averages. For the ten-year period, 38 of 44 Vanguard active bond funds outperformed their peer-group averages. All data as of December 31, 2020. Results will vary for other time periods. Only funds with a minimum one-, three-, five-, or ten-year history, respectively, were included in the comparison. Source: Lipper, a Thomson Reuters Company. Note the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. View most recent fund performance
For the three-year period, 23 of 28 active taxable fixed income fund share classes exhibited top-quartile performance relative to peer funds in their Lipper categories. For the five-year period, 16 of 24 active taxable fixed income fund share classes exhibited top-quartile performance relative to peer funds in their Lipper categories. For the ten-year period, 17 of 22 active taxable fixed income fund share classes exhibited top-quartile performance relative to peer funds in their Lipper categories. 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 represent 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 www.vanguard.com/performance. 28 of 32 of active taxable fixed income fund share classes are in the lowest quartile of expense ratios. (Source: Morningstar.) All data as of December 31, 2020.
2 Note: Vanguard calculations, based on data from Morningstar, Inc., as of December 31, 2021, show that Vanguard active fixed income funds had an average asset-weighted expense ratio of 10.4 basis points, compared with an average asset-weighted expense ratio of 49.0 basis points for non-Vanguard active fixed income funds.
3 During the period, 385 funds (including both open-end and ETFs) were included in the US Fund Intermediate Core Bond Morningstar category. Only funds with a minimum three-year history are included for comparison. Results will vary over other time periods. Note that the competitive performance data shown represent 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 www.vanguard.com/performance
Trading floor
Take a quick tour of our bond trading floor for a behind-the-scenes peek at how we actively manage fixed income.
Related tools
Use our tools for reliable, unbiased data for Vanguard and non-Vanguard products. Include ETFs and mutual funds from any fund family. Independent analysis by Morningstar provides unbiased results.
Portfolio analytics
Create and evaluate the fixed income portion of client portfolios. Analyze hypothetical performance risk statistics, country diversification, asset allocation, compare two portfolios side by side, and more.
Compare products
Easily compare up to five fixed income products in a convenient side-by-side layout. Generate custom, client-ready PDFs and easily email the online comparisons.
Have questions about active fixed income? Contact us.
Disclosures and footnotes
All investing is subject to risk, including possible loss of principal.
Vanguard is investor-owned, meaning the fund shareholders own the funds, which in turn own Vanguard.
Diversification does not ensure a profit or protect against a loss.
Tax loss harvesting involves certain risks, including, among others, the risk that the new investment could have higher costs than the original investment and could introduce portfolio tracking error into your accounts. There may also be unintended tax implications. Prospective investors should consult with their tax or legal advisor prior to engaging in any tax-loss harvesting strategy. Vanguard does not provide tax or legal advice.
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.
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.
Although the income from municipal bonds held by a 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.
© 2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The Morningstar Rating™ for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a 3-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% 3-year rating for 36–59 months of total returns, 60% 5-year rating/40% 3-year rating for 60–119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods.