WEB Vanguard to Bolster Active Fixed Income Lineup with Two Active Municipal ETFs
Vanguard Expands Municipal Bond Offerings
Vanguard, the world's largest manager of bond mutual funds and ETFs, is expanding its fixed income lineup with two active municipal ETFs.
Key Points:
* Vanguard Core Bond ETF (VCRB) will provide broad exposure to the U.S. investment-grade corporate bond market. * Vanguard Core-Plus Bond ETF (VPLS) will offer higher potential returns with an actively managed portfolio of investment-grade and high-yield corporate bonds. * These new ETFs complement Vanguard's existing suite of passive municipal ETFs and build on the firm's 40+ years of municipal bond expertise.Expanding Vanguard's Municipal Bond Offerings
The new ETFs offer investors an active alternative to Vanguard's passive municipal ETF offerings, which include the Vanguard Tax-Exempt Bond Index Fund (VTEB) and the Vanguard High-Yield Tax-Exempt Bond Index Fund (VTEAX).
Vanguard's municipal bond team comprises more than 40 experienced professionals who manage over $247 billion in assets. This team will leverage its expertise to actively manage the new ETFs.
Growing Demand for Active Management in Municipal Bonds
Vanguard's entry into the active municipal ETF market reflects the growing demand for active management in this asset class.
According to Morningstar, assets in active municipal bond funds have increased by 30% over the past five years, as investors seek higher yields and more tailored exposure to the municipal bond market.
These new ETFs offer investors a unique opportunity to access Vanguard's expertise and track record in municipal bond investing through an active approach.
Conclusion
Vanguard's launch of these two active municipal ETFs demonstrates the firm's commitment to providing investors with a comprehensive range of fixed income solutions.
With its experienced municipal bond team and proven track record, Vanguard is well-positioned to deliver strong results for investors in these new ETFs.
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