Vanguard Core Plus Bond ETF

VPLS

Market cap $934M

Vanguard Core Plus Bond ETF (VPLS) offers a flexible, actively managed bond strategy with global diversification and selective high-yield exposure for today's environment. VPLS balances U.S. investment-grade, corporate, and foreign bonds, providing yield opportunities while maintaining a quality tilt and limiting credit risk. The fund is well-positioned for a potential Fed easing cycle, with enough duration to benefit from lower rates and credit spreads that remain supportive.

The same macro factors affecting the equities market, such as tariffs, geopolitical factors, and a changing interest rate policy are also affecting the fixed income markets. With that, there's never been a better time to access active fixed income strategies that help advisors and investors navigate the murky macro environment.

Advisors may sometimes feel like they're venturing out to solve the world's personal financial problems alone. This applies to entrepreneurs managing their own firms and intrapreneurs who are part of an existing firm.

As widely expected, the U.S. Federal Reserve cut the federal funds rate by 25 basis points for a second time this year. This gives fixed income investors an opportunity to reposition their portfolios with intermediate bonds or reconsider active exposure if they don't have it already.

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.