Vanguard today launched Vanguard Multi-Sector Income Bond ETF (VGMS), an actively managed fixed income ETF overseen by Vanguard Fixed Income Group.
“VGMS seamlessly integrates institutional-grade active investment strategies with Vanguard’s hallmark of low-cost leadership, delivering a powerful and differentiated solution for advisors and investors navigating today’s complex and fast-evolving markets,” said Sara Devereux, global head of Vanguard Fixed Income Group. “Our seasoned portfolio managers employ a rigorous top-down and bottom-up investment process, ensuring every security is meticulously evaluated and executed with precision and purpose.”
The new ETF is designed to add total return potential while generating higher income, offering advisors and investors access to professional management across a range of fixed income sectors including investment-grade credit, high-yield corporates, emerging market bonds, and structured products.
“Active fixed income ETFs are increasingly favored by advisors and clients for their low costs, tax efficiency, and potential to add diversification and alpha to portfolios,” said Amma Boateng, managing director and head of Vanguard Financial Advisor Services. “VGMS pairs these features of an ETF with Vanguard’s experienced team and proven process to seek outperformance in higher-yielding sectors of the bond market.”
VGMS boasts an estimated expense ratio of 0.30%, providing a cost advantage of 0.18% compared to the asset-weighted category average. It represents Vanguard’s seventh actively managed fixed income ETF in the U.S. and is managed by Michael Chang, Arvind Narayanan, and Daniel Shaykevich, each of whom has more than two decades of experience managing fixed income portfolios.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.