Vanguard continues to bolster its active ETF lineup with a new, high yield fund — the Vanguard High-Yield Active ETF (VGHY). It’s the first high yield active ETF from Vanguard, bringing their current active ETF roster to nine funds.
The launch of VGHY comes after Vanguard released three other active fixed income ETFs earlier this year — the Vanguard Short Duration Bond ETF (VSDB), the Vanguard Multi-Sector Income Bond ETF (VGMS), and the Vanguard Government Securities Active ETF (VGVT). It follows the broader trend of more active ETF launches in 2025, as well as Vanguard’s own effort to insert more active ETFs into the marketplace.
“Vanguard has a strong heritage managing high yield corporate bonds for advisors through a mutual fund product, so it is great to see them bring that expertise into the ETF market,” said TMX VettaFi Head of Research Todd Rosenbluth. “We have seen growing adoption of actively managed fixed income ETFs in 2025. Additional supply from a proven manager will be valuable.”
The fund will focus on a broad array of high-yield bonds, seeking to outperform the broader high yield market. Per Vanguard’s press release, VGHY will include limited flexibility to dip into complementary sectors like leveraged loans and U.S. investment-grade corporate bonds.
Flexible and Cost-Effective
VGHY’s actively managed strategy means the portfolio managers can adjust VGHY’s holdings as necessary to suit current market conditions. This flexibility is almost imperative in a high yield bond market that carries its own nuances and complexities. The fund also carries a low 0.22% expense ratio (less than half of the category average), which makes it a competitive offering relative to other active fixed income funds.
Furthermore, like all of their active fixed income ETFs, VGHY taps into the expertise and experience of the Vanguard Fixed Income Group. Vanguard manages just over $1 trillion in actively managed fixed income assets such as global corporate bonds, emerging markets, structured products, money markets and municipal bonds.
“The addition of VGHY to Vanguard’s lineup exemplifies our decades-long commitment to disciplined credit investing,” said Michael Chang, head of high yield portfolio management at Vanguard. “This ETF is powered by a deeply integrated team of credit analysts, traders, and risk specialists who collaborate daily to uncover value and manage risk across the high-yield landscape. Our goal is to deliver an actively managed solution that adapts dynamically to market conditions with precision and purpose to outperform its benchmark and peers.”
Vanguard will be at the VettaFi Q3 Fixed Income Symposium on Thursday, September 18 to discuss active fixed income strategies.
For more news, information, and strategy, visit the Fixed Income Content Hub.
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