Fixed income

Vanguard bond funds

Institutional quality fixed income for advisors.

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OVERVIEW

A range of bond products for any need

As a financial advisor, you understand the importance of bonds in a well diversified investment portfolio. Vanguard offers a comprehensive range of bond products you can use to create a tailored fixed income strategy for any client need.

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Core bonds

Core and Core-Plus Bond ETFs: A foundation for portfolios

Core bonds can help provide a strong base for any fixed income portfolio by offering broad exposure to investment grade bonds. Our Core Bond ETF (VCRB) and Core-Plus Bond ETF (VPLS) can help your clients achieve a stable income stream and manage interest rate risk.

The benefits of our core bond ETFs include:

  • Professional asset allocation of your fixed income sleeve by Vanguard's team of experts - allowing you to navigate different market environments and manage risk while freeing up your time.
  • Higher-quality bias, with a focus on investment grade corporate bonds, Treasuries, and agency mortgage backed securities. Core-Plus has the flexibility to opportunistically invest in below-investment-grade securities such as high-yield corporate and emerging market bonds.
  • Simplified due diligence as you only need to approve and oversee one management team.
  • Low cost at only 10/20 bps.

For more information on VCRB and VPLS, including prospectuses and performance data, visit our product detail pages:

Multisector bonds

Multisector bond funds and ETFs: A solution for income-seeking investors

Multisector bond funds and ETFs can be attractive for clients seeking a moderate-to-high level of current income. Our Multi-Sector Income Bond ETF (VGMS) and mutual fund (VMSAX) invest in a diverse range of fixed income assets, including investment-grade corporate, high-yield, and emerging market bonds.

The benefits of our multisector bond offerings include:

  • Competitive expense ratio at 0.30% for both VGMS and VMSAX. 
  • Flexible mandate and active management to navigate complex fixed income markets. 
  • Dynamic credit allocation approach that seeks to optimize returns and minimize risk. 
  • Transparent and true-to-label investment experience.

See the details about VGMS and VMSAX:

Ultrashort bonds

Ultrashort bonds: A tool for managing liquidity

Ultrashort bonds can help clients who need to manage liquidity or are seeking a low-risk investment with a short duration. Our 0-3 Month Treasury Bill ETF (VBIL) and Ultra-Short Bond ETF (VUSB) offer immediate liquidity and low expense ratios.

The benefits of our ultrashort bond offerings include:

  • Low expense ratios at 0.07% for VBIL and 0.10% for VUSB.
  • High-quality, short-term securities to help provide stability and less sensitivity to interest rate fluctuations.

For more information on VBIL and VUSB, visit our product detail pages.

 

Treasury bonds

Treasury bonds: A risk-management asset for portfolios

Vanguard has a full suite of Treasury bond ETFs to help you help clients manage interest rate risk and provide cushion in portfolios. Such funds can be used as the building blocks needed to access the highly liquid Treasury market across the maturity spectrum.

  • Low expense ratios at 0.03% for both VTG and VGSH. 
  • High level of credit quality, backed by the full faith and credit of the U.S. government. 
  • Liquidity and exposure to targeted durations.

Tailor your exposure to the yield curve with our Treasury ETFs.

(hypothetical example)

This chart illustrates the yield curve exposure for each of our Treasury ETFs. It shows the distribution of investments across different maturities, highlighting key points where the exposure is concentrated. The chart helps to visualize how each ETF is positioned along the yield curve, providing insights into potential interest rate sensitivity and risk.

Notes: Past performance is no guarantee of future results.

Sources: Vanguard, as of January 31, 2025, and U.S. Department of the Treasury Daily Par Yield Curve Rates, as of January 31, 2025.

 

For more information on these ETFs, visit our product pages.

Municipal bonds

Municipal bonds: A tax-efficient solution

Municipal bonds can help clients seeking income that can be exempt from federal and state taxes. Our Core Tax Exempt Bond ETF (VCRM) and our Intermediate Term Tax Exempt Bond ETF (VTEI) invest in a diverse range of municipal securities.

The benefits of our municipal bond offerings include:

  • Low expense ratios at 0.12% for VCRM and 0.08% for VTEI. 
  • Tax-efficient income. 
  • Diversified portfolio of high-quality municipal securities.

To explore our municipal bond offerings, including VCRM and VTEI, visit our product pages.

 

Explore our full range of bond funds and ETFs

Vanguard offers a full range of bond funds and ETFs designed to meet various investment needs, from core and core-plus bonds to multisector, Treasury, and municipal bonds. Each product is characterized by its unique features and benefits, so advisors can find the right fit for their clients' portfolios.

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Tools and resources

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.

 

Bond Duration Tool

Build fixed income portfolios that balance risk and potential return with our Bond Duration Tool.

Calculate bond duration

 

Resources

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  • PDF

    The enduring power of bonds

    Use this brochure to help educate your clients about bonds.

 

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Have questions about bonds? Contact us.

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Disclosures and footnotes

  • For more information about Vanguard funds, 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.
  • Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.
  • 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. 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.
  • Diversification does not ensure a profit or protect against a loss.
  • 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.
  • 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.
  • Stocks or 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.