New Vanguard VGMS ETF Targets Bigger Bond Returns Beyond Treasuries
Vanguard's New ETF Launch: Vanguard is launching the Multi-Sector Income Bond ETF (VGMS), which aims to provide higher income through active management across various fixed-income sectors, contrasting with traditional bond ETFs that follow broad indexes.
Experienced Management Team: The fund will be managed by a team of seasoned professionals with over 20 years in credit markets, allowing for real-time adjustments based on market value and risk, all while maintaining a competitive expense ratio of 0.30%.
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Introduction of VGHY: Vanguard has launched the Vanguard High-Yield Active ETF (VGHY), marking its first active strategy in the high-yield bond market and increasing its total active ETFs to nine.
Investment Flexibility and Cost: VGHY offers managers flexibility in investment choices, including high-yield bonds and related sectors, with a low expense ratio of 0.22%, making it an attractive option for return-seeking investors in a volatile bond market.
Vanguard's High-Yield ETFs: Vanguard offers nine exchange-traded funds (ETFs) with yields over 4.84%, with the Vanguard Emerging Markets Government Bond ETF having the highest yield, while the Vanguard Long-Term Corporate Bond ETF is considered the best overall choice due to its balance of yield, low expense ratio, and strong performance.
Investment Considerations: When selecting an ETF, investors should consider factors beyond yield, such as costs, long-term performance, and risk levels, as different funds cater to varying investor priorities regarding safety and income generation.
Vanguard's New Bond ETFs: Vanguard has launched three new fixed income funds, including one actively managed ETF and two passive strategies, to meet the growing demand for bond investments amid economic uncertainty, inflation fears, and interest rate fluctuations.
Shift Towards Active Management: The introduction of these funds indicates Vanguard's strategic pivot towards active management in fixed income, providing investors with more flexible options to navigate today's volatile market conditions while maintaining low expense ratios.
Surge in Bond Demand: There has been a significant increase in demand for bonds, particularly U.S. government debt, with net inflows into fixed-income ETFs rising 70% to $5.3 billion in one week.
Return of Investor Appetite: U.S. Treasury ETFs saw a turnaround, attracting $2 billion after previous outflows, marking an inflow nearly 50% higher than the average over the past 13 weeks.
Vanguard's New ETF Launch: Vanguard is launching the Multi-Sector Income Bond ETF (VGMS), which aims to provide higher income through active management across various fixed-income sectors, contrasting with traditional bond ETFs that follow broad indexes.
Experienced Management Team: The fund will be managed by a team of seasoned professionals with over 20 years in credit markets, allowing for real-time adjustments based on market value and risk, all while maintaining a competitive expense ratio of 0.30%.









