Vanguard High-Yield Active ETF

VGHY

Vanguard High Yield Active ETF (VGHY) marks a notable expansion into junk bonds, diverging from Vanguard's traditional low-cost, broad index offerings. VGHY is actively managed, aiming to outperform the high-yield market, but its 0.22% expense ratio is only competitive among active peers, not index ETFs. Early portfolio data shows solid diversification, but it's too soon to judge VGHY's performance or risk profile compared to established competitors.

Active fixed income ETFs have been quite popular thus far in 2025. However, following the Fed's rate cut, we expect demand to persist into yearend and into 2026.

Vanguard continues to bolster its active ETF lineup with a new, high yield fund — the Vanguard High-Yield Active ETF (VGHY). It's the first high yield active ETF from Vanguard, bringing their current active ETF roster to nine funds.