Vanguard has filed registration statements for two new active fixed income funds: the Vanguard Core-Plus Bond Fund, to be introduced in the fourth quarter, and the Vanguard Multi-Sector Income Bond Fund, to be rolled out at a later date.
If approved by the Securities and Exchange Commission, the core-plus bond fund would have an estimated expense ratio of 0.30% for Investor shares and 0.20% for Admiral shares, while the multi-sector fund would have an estimated expense ratio of 0.40% for Investor shares and 0.30% for Admiral shares.
According to Vanguard, the new funds aim "to meet the needs of clients seeking actively managed 'core' and 'satellite' bond portfolios" and represent the firm's "ongoing efforts to improve investor outcomes through single-fund fixed income strategies with enduring investment merit and low costs."
Vanguard's new core-plus bond fund is set to invest in Treasury, mortgage-backed, and other U.S. investment-grade securities, as well as high-yield corporate securities and emerging markets debt of all credit quality ratings.
