Vanguard launches a USD high yield corporate bond UCITS ETF with the lowest cost in its Morningstar category
8 OCT, 2026
By Joanna Piwko from RankiaPro Europe
Vanguard today expanded its fixed-income UCITS ETF range with the launch of the Vanguard USD High Yield Corporate Bond UCITS ETF, which gives European investors diversified, low-cost access to the US dollar-denominated high yield bond market.
With a total management cost of 0.15%, the ETF is the lowest-cost Europe-domiciled fund in Morningstar's "UCITS USD High Yield Bond" category, according to the applicable peer group, and Claire Aley, Head of Product and PRD for Europe at Vanguard, presents it as a source of income for portfolios.
Broad exposure to sub-investment grade US dollar corporate debt
The ETF tracks the Bloomberg US High Yield $250MM 2% Issuer Capped Index, which provides diversified exposure to US dollar-denominated corporate bonds rated below investment grade.
It is available in accumulating and distributing share classes, both with an ongoing charges figure (OCF) of 0.15%, and will trade on the London Stock Exchange, Deutsche Börse, Borsa Italiana, Euronext Amsterdam and SIX Swiss Exchange.
| Exchange | Accumulating class (trading currency) | Distributing class (trading currency) |
|---|---|---|
| London Stock Exchange | USD | USD |
| Deutsche Börse | EUR | EUR |
| Borsa Italiana | EUR | EUR |
| SIX Swiss Exchange | USD and CHF | USD and CHF |
| Euronext Amsterdam | EUR | EUR |
An income source for a shifting fixed-income environment
Aley places the launch in the context of investors looking to enhance portfolio income, manage duration risk and broaden diversification, pointing to the size of the US dollar segment within the global high yield corporate bond market.
The US dollar high yield market is the largest segment of the global high yield corporate bond market and a fundamental pillar of a comprehensive fixed income offering. We are now launching Vanguard's USD High Yield Corporate Bond UCITS ETF to give investors diversified, low-cost access to an important source of income, at a time when many are looking to enhance portfolio income, manage duration risk and broaden diversification. The ETF draws on Vanguard's extensive fixed income expertise and further strengthens our range of scalable investment opportunities that can play a meaningful role across market cycles.
Claire Aley, Head of Product and PRD for Europe, Vanguard
Part of a wider expansion of Vanguard's UCITS ETF range
The new fixed-income vehicle follows nine equity ETF launches in 2026, including the four US equity UCITS ETFs based on Russell indices that Vanguard introduced in July and the two European equity UCITS ETFs launched in May.
Vanguard has also applied several fee reductions over the last 24 months, which it estimates have saved investors more than $80 million. Together, these moves extend its low-cost UCITS ETF range across global, regional and market-cap exposures while lowering the cost of ETF investing.
