Vanguard Core Plus Bond ETF

VPLS

Market cap $741M

It might be auspicious timing that the VettaFi Q3 Fixed Income Symposium came less than 24 hours after the Federal Reserve instituted the first rate cut of the year. With that, investors must know how to navigate the current fixed income environment in which a Fed is easing monetary policy.

Vanguard Core-Plus Bond ETF offers active management, balancing core investment-grade bonds with a modest allocation to high-yield for enhanced returns. The fund maintains diversification, moderate duration, and cautious high-yield exposure, with a high turnover rate reflecting responsive management. Macro indicators suggest a flattening yield curve and moderate credit spreads, supporting selective duration and credit positioning for steady income.

Approximately 500 new ETFs launched year-to-date through mid July, according to FactSet. This is significantly more than the approximately 300 at this point a year earlier.

On Wednesday, Vanguard expanded its fixed income ETF selection with the launch of three new funds. For folks looking to outperform the Treasury market, the Vanguard Government Securities Active ETF (VGVT) may be an attractive new option.

Elevated interest rates and market uncertainty make for an interesting tandem regarding getting core bond exposure. When considering yield, reinforcing a portfolio to absorb market shocks, or both, consider this active option from Vanguard: the Vanguard Core-Plus Bond ETF (VPLS).

VettaFi recently sat down with Bill Coleman, Vanguard's head of U.S. ETF Capital Markets, at Exchange. Coleman discussed investor behavioral trends and the growing role that active ETFs are playing in portfolios.

A trio of Vanguard's bond offerings recently received their first Morningstar medalist ratings.

JPMorgan Income ETF JPIE Daniel Sotiroff: ETFs have a big advantage over mutual funds: They're more tax efficient.

The Vanguard Core-Plus Bond ETF is an actively managed fund focusing on investment-grade U.S. bonds, with selective exposure to below-investment-grade and emerging market debt. VPLS has outperformed the iShares Core U.S. Aggregate Bond ETF by over 150 bps since inception, thanks to active management and strategic bond selection. The ETF's intermediate duration of 5.8 years and 4.9% 30-day SEC yield make it attractive in today's high-rate environment.

Investors have upped their interest in actively managed bond ETFs, pouring record capital into them in January as some paid up in hopes of stronger returns.