“Vanguard Multi-Sector Income Bond Fund provides investors access to our world-class fixed income investment talent through a low-cost strategy with high alpha potential,” said Sara Devereux, global head of Vanguard Fixed Income Group. “We believe the fund can help clients meet their long-term investment objectives by serving as a complement to a well-diversified portfolio.”
Vanguard Multi-Sector Income Bond Fund can invest in a wide range of fixed income asset classes but will offer exposure primarily to U.S. high-yield corporate securities, U.S. investment-grade securities, and emerging markets debt of all credit quality ratings—three areas of the market where Vanguard has demonstrated expertise. By appropriately weighting these three allocations within the fund’s custom benchmark, Vanguard aims to provide greater performance transparency than solely using a broad fixed income benchmark commonly used by competing multisector products. The fund has an estimated expense ratio of 0.40% for Investor Shares and 0.30% for Admiral™, compared with an average expense ratio of 0.66% for industry peers.1
A distinguished leader in global fixed income
For more than 40 years, Vanguard Fixed Income Group has distinguished itself with deep investment capabilities, disciplined security selection processes, and rigorous risk management techniques, resulting in consistent, long-term performance. Vanguard continues to invest in its active bond portfolio management capabilities and offers a carefully curated and enduring lineup that continues to provide long-term value and meets evolving investor needs.
Vanguard’s active and index fixed income investment product lineup encompasses a full range of broadly diversified core and more targeted satellite exposures across the duration and credit quality spectrums. Vanguard has a long track record of outperformance with 98% of Vanguard active fixed income funds surpassing their peer group averages over the past 10 years ended December 31, 2022.2
1 Peer group is Morningstar’s multisector income category
2 For the ten-year period ended December 31, 2022, 80 of 90 Vanguard bond funds outperformed their peer group averages; results will vary for other time periods. Only funds with a minimum ten-year history were included in the comparisons. (Source: Lipper, a Thomson Reuters Company) Note that this competitive performance data represents past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at www.vanguard.com/performance.
Notes:
- All figures as of December 31, 2022, unless stated otherwise.
- For more information about Vanguard funds, visit institutional.vanguard.com or call 800-523-1036 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
- All investing is subject to risk, including the possible loss of the money you invest.
- Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. Investments in bonds are subject to interest rate, credit, and inflation risk. High-yield bonds generally have medium- and lower-range credit quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit quality ratings. Bonds of companies based in emerging markets are subject to national and regional political and economic risks and to the risk of currency fluctuations. These risks are especially high in emerging markets.