Vanguard continues to bolster its fixed income ETF lineup with the addition of the new Vanguard Core-Plus Bond Index ETF (BNDP). The new fund offers broad-based, diversified U.S. taxable bond exposure. It targets investors who seek a core bond fund with an added focus on extracting more yield.
The launch of BNDP comes after Vanguard introduced new active ETFs to their fixed income roster this year, following the broader trend of the marketplace. This time, the firm got back to doing what it does best — offering low-cost indexed funds to meet the needs of investors.
“Demand for fixed income ETFs has never been stronger. It ‘s a sign of advisors’ growing comfort,” said TMX VettaFi Head of Research Todd Rosenbluth. “It is great to see Vanguard continue to expand its lineup to support asset allocation strategies.”
BNDP’s launch also comes at a time when more investors are seeking higher income opportunities, as the U.S. Federal Reserve is in the midst of a rate-cutting cycle. BNDP tracks the Bloomberg U.S. Universal Float Adjusted Index that includes U.S. government and investment-grade corporate. However, it also adds securitized, high yield corporate, and emerging market debt.
As mentioned, Vanguard is world-renowned for offering low-cost funds. BNDP does just that. It carries an expense ratio of 0.05%, or just $5 per every $10,000 invested.
Backed by Vanguard’s Fixed Income Group
The vaunted Vanguard Fixed Income Group backs the fund. It brings a deep well of fixed income expertise and experience backed by advanced technology, alongside a disciplined investment process. Given the size, fragmentation, and complexities associated with the bond market, having a team of experts to back a fund is a must. That’s especially the case now with a macroeconomic environment marked by uncertainty. BND, in particular, will be led by Josh Barrickman. Barrickman brings over 20 years of experience in fixed income strategy and portfolio management.
BNDP builds off a strong heritage — Vanguard introduced the first bond index fund in 1986. That said, the firm has maintained a strong presence in the bond fund marketplace for many years.
“Vanguard Core-Plus Bond Index ETF brings investors a low-cost, comprehensive solution that spans the full spectrum of U.S. taxable fixed income—including high-yield and emerging market debt,” said Josh Barrickman, co-head of Fixed Income Indexing, Americas. “BNDP is built to serve as a core portfolio holding for those seeking enhanced yield potential while maintaining the rigor and discipline Vanguard is known for.”
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