Bond funds

Multisector bond funds

Income enhancement and diversifying exposure to complement a core fixed income portfolio.

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OVERVIEW

Why multisector bond ETFs?

Multisector bond ETFs offer diversified exposure to higher-income-producing fixed income sectors. Vanguard's active management allows for professional manager discretion in significant sector allocation and security selection decisions.

Key characteristics of Vanguard’s multisector bond portfolios

How to implement VGMS

Where multisector bonds may fit in a diversified portfolio

Multisector bonds can meet the needs of clients, particularly those in or approaching retirement who are seeking greater income generation and improved total return outcomes. Vanguard's multisector products are designed for investors who:

  • Are looking for a complement to an already diversified fixed income portfolio.
  • Have a higher risk tolerance and seek greater income and return potential through four areas of the market where Vanguard demonstrates expertise—investment grade, high yield, emerging markets, and structured products.
  • Want exposure to income-producing sectors managed by a trusted leader in asset allocation.

Why VGMS

What makes Vanguard Multi-Sector Income Bond ETF (VGMS) unique?

Clear design
 

VGMS focuses on four key credit sectors: investment grade, high yield, emerging markets, and structured products. Its custom benchmark reflects these allocations, offering a transparent lens into the fund's performance.

Low cost and smart risk-taking
 

A low expense ratio allows the management team to be opportunistic when seeking to maximize return and yield instead of taking undue risk to overcome a high fee hurdle.

Performance
 

VGMS seeks to outperform its benchmark through disciplined security selection and sector rotation. 

Talk to clients
 

Use our client-approved one-pager, A bond ETF designed to boost your retirement income, to help you talk to clients about VGMS.

View the brochure

 

Approximate sector exposures

 

Notes: Growth represented by the S&P 500 Total Return Index.

Sources: Vanguard calculations based on data provided by Morningstar Direct and Standard & Poor’s as of December 31, 2023.

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Is VGMS the multisector solution you need?

Vanguard's Sam Martinez, head of active fixed income product, discusses how VGMS leverages the expertise of over 100 seasoned professionals to help streamline your strategy, broaden portfolio exposure, and support your clients' long term financial goals.

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Meet the team

Meet our Multi-Sector Income Bond ETF portfolio managers

The management team for VGMS and VMSAX includes portfolio managers Michael Chang, CFA, principal, senior portfolio manager; Arvind Narayanan, CFA, principal, senior portfolio manager; and Daniel Shaykevich, principal, senior portfolio manager. Each brings a wealth of expertise and collectively they bring 70 years of industry experience.
 

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Portfolio analytics

Create and evaluate the fixed income portion of client portfolios. Analyze hypothetical performance risk statistics, country diversification, and asset allocation; compare two portfolios side-by-side; and more.

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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.
  • All investing is su bject 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.
  • 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.