Vanguard Launches Target Maturity Corporate Bond ETF Suite

VALLEY FORGE, Pa., March 26, 2026 /PRNewswire/ -- Vanguard today announced the launch of the Vanguard Target Maturity Corporate Bond ETFs (TMEs or BondBuilder™ TMEs) suite, a lineup of 10 index ETFs (Vanguard Target Maturity 20xx Corporate Bond ETFs) designed to help investors build more precise and customizable fixed income portfolios.

The new ETF suite provides flexible, goals-based income solutions that make possible targeted fixed-income maturity exposures. When combined, the TMEs provide a compelling alternative to bond ladders and separately managed accounts (SMAs) for select investors; combining the diversification, liquidity, and trading efficiency of ETFs with the features of defined maturities traditionally associated with individual bonds.

"As investors reassess fixed income's role in portfolios, there is growing demand for approaches that provide the flexibility and control needed to address an increasingly broad set of investment goals," said Geoff Parrish, global head of fixed income indexing. "Vanguard BondBuilder™ Target Maturity ETF suite combines the approach of holding bonds to maturity with the benefits of the ETF structure - providing professionally managed, broadly diversified exposure across corporate bond issuers and sectors in an efficient and cost-conscious wrapper."

Each ETF in the suite has an expense ratio of 0.08%,¹ making Vanguard BondBuilder™ suite the lowest cost TME ETFs on the market.² The funds are designed to help investors manage interest rate risk and credit risk while simplifying portfolio construction across maturity horizons.

The TMEs are managed by Vanguard, through Vanguard Capital Management's Fixed Income Group Global Bond Indexing team, which oversees a range of established bond ETFs, including Vanguard Short-Term Corporate Bond ETF (VCSH), Intermediate-Term Corporate Bond ETF (VCIT), Long-Term Corporate Bond ETF (VCLT), Total Corporate Bond ETF (VTC), and Total Bond Market ETF (BND).

Joshua Barrickman and Jake Riley serve as the portfolio managers responsible for day-to-day management of the funds, each with more than 20 years of industry experience.

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 tens of millions of individual investors around the globe—directly, through workplace plans, and through financial intermediaries. 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.

¹The expense ratio information shown reflects estimated amounts for the current fiscal year.
²  Morningstar, Inc., as of December 31, 2025.

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.

The Target Maturity ETFs (TMEs) are term funds that will liquidate in December of the year in each TME's name. During the 12 months prior to the planned liquidation date, each TME's yield generally will tend to move toward prevailing money market rates.

Vanguard Marketing Corporation, Distributor.

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SOURCE Vanguard