Vanguard Launches Its First Actively Managed High-Yield Bond ETF

VALLEY FORGE, Pa., Sept. 17, 2025 /PRNewswire/ -- Vanguard today launched Vanguard High-Yield Active ETF (VGHY), an active fixed income ETF managed by Vanguard Fixed Income Group.

"The addition of VGHY to Vanguard's lineup exemplifies our decades-long commitment to disciplined credit investing," said Michael Chang, Head of High-Yield Portfolio Management at Vanguard. "This ETF is powered by a deeply integrated team of credit analysts, traders, and risk specialists who collaborate daily to uncover value and manage risk across the high-yield landscape. Our goal is to deliver an actively managed solution that adapts dynamically to market conditions with precision and purpose to outperform its benchmark and peers."

VGHY is designed to provide diversified exposure across the full high-yield credit quality spectrum, with the limited flexibility to invest in complementary sectors such as leveraged loans and U.S. investment-grade corporate bonds. The new ETF aims to meet investor demand for income through professionally managed access to high-yield corporate bonds. VGHY has an estimated expense ratio of 0.22%,¹ significantly below the category average of 0.59%,² reinforcing Vanguard's commitment to delivering value through low-cost, high-quality investment solutions.

An experienced fixed income manager

For more than four decades, Vanguard Fixed Income Group has exemplified excellence in fixed income investing through its deep analytical capabilities, disciplined security selection, and robust risk management framework. Guided by a client-first philosophy, Vanguard continues to invest in its fixed income platform, curating a suite of offerings that evolve with investor needs while delivering enduring value. Vanguard's commitment to active fixed income management has deepened significantly over the past decade, resulting in a robust and expanding collection of strategies.

Through sustained investment in portfolio management talent, proprietary credit research, and disciplined risk management, the firm has enhanced its active capabilities across both taxable and municipal markets. This evolution includes the deliberate buildout of Vanguard's actively managed bond ETF lineup, nine in total, that spans multiple sectors and reflects growing investor demand for professionally managed solutions.

Today, Vanguard manages over $1.1 trillion in active fixed income assets, offering access to a broad array of strategies—including global corporate bonds, emerging markets, structured products, money markets and municipal bonds.³ These developments underscore Vanguard's strategic focus on equipping investors with tools to navigate complex market environments with greater precision and flexibility.

About Vanguard
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to individual investors, institutions, and financial professionals. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.

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.

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.

Vanguard Marketing Corporation, Distributor.

¹ The expense ratio information shown reflects estimated amounts for the current fiscal year.
² Morningstar as of July 31, 2025.
³ All figures as of July 31, 2025, unless stated otherwise.

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SOURCE Vanguard