Vanguard expands its active fixed-income range with a new dollar-denominated high-yield fund
27 OCT, 2026
By Joanna Piwko from RankiaPro Europe
Vanguard is expanding its actively managed fixed income range with a fund that provides access to high-yield corporate bonds at an ongoing charge of 0.25%. The asset manager is launching the Vanguard USD High Yield Corporate Bond Fund today, October 27. Its lead manager is Michael Chang, Vanguard’s Head of High Yield.
The fund will be managed by Vanguard’s Fixed Income Group, which manages more than $3 trillion in fixed income assets worldwide.
Objective and flexibility relative to the index
The fund seeks to deliver a total return, combining capital appreciation and income, that exceeds that of its benchmark, the Bloomberg US High Yield 2% Issuer Cap Index. It aims to achieve this through disciplined security selection and rigorous risk management.
The portfolio focuses on high-yield corporate bonds issued primarily by US companies. The managers have the flexibility to invest outside the index, including in leveraged loans, when they identify attractive investment opportunities.
Successful high-yield investing requires discipline and selectivity. Our approach is based on rigorous credit analysis, disciplined security selection and a strong focus on risk management. We believe this enables us to build a portfolio capable of generating attractive income while maintaining broad diversification across issuers and sectors in different market environments.
Michael Chang, Head of High Yield and lead manager of the Vanguard USD High Yield Corporate Bond Fund, Vanguard
Fund structure and cost
Domiciled in Ireland, the fund offers share classes in US dollars, with both accumulation and distribution options. Its ongoing charges figure (OCF) is 0.25%, a cost the asset manager describes as highly competitive for a straightforward active management approach.
We know investors are looking for fixed income solutions that can help them generate income without significantly increasing the complexity of their portfolios. This fund provides access to an established segment of the bond market through a straightforward active management approach and at a highly competitive cost.
Claire Aley, Director of Product and PRD for Europe, Vanguard
For investors who prefer the listed format, Vanguard also offers a UCITS ETF covering the same segment, the Vanguard USD High Yield Corporate Bond UCITS ETF, which RankiaPro has already covered.
A team specializing in fixed income
The Fixed Income Group, one of the world’s largest bond investment managers, brings together expertise in economics, interest rates, credit analysis, trading, portfolio construction, and risk management.
Its philosophy is centered on rigorous analysis, disciplined portfolio construction, and strict risk control, with the aim of delivering value to investors over the long term.
