Core Insights - The macroeconomic factors impacting the equities market, such as tariffs and interest rate policies, are also influencing fixed income markets, making it an opportune time for active fixed income strategies [1] - Active ETFs have seen a record number of launches in 2025, attracting nearly $340 billion in inflows, surpassing the combined inflows of 2021 to 2023 [2] - Vanguard is expanding its active fixed income offerings, supported by the expertise of the Vanguard Fixed Income Group [3] Active Fixed Income Options - The Vanguard Core Bond ETF (VCRB) offers a low expense ratio of 0.10% and provides diverse fixed income exposure, including U.S. investment-grade bonds and mortgage-backed securities [4] - The Vanguard Core-Plus Bond ETF (VPLS) includes a broader range of income opportunities, such as U.S. Treasuries and emerging market debt [5] - The Vanguard Core Tax-Exempt Bond ETF (VCRM) focuses on municipal debt, providing federal tax-free income [6] Short-Term Investment Strategies - Short-term bond funds can be a viable option for consumers looking to optimize cash for future expenses, alongside traditional instruments like money market accounts and CDs [7] - Vanguard offers three short-term bond ETFs: Vanguard Short Duration Tax-Exempt Bond ETF (VSDM), Vanguard Ultra-Short Bond ETF (VUSB), and Vanguard Short Duration Bond ETF (VSDB), which are low-cost and liquid [8][9] Sector Diversification - The Vanguard Multi-Sector Income Bond ETF (VGMS) is designed for investors seeking to diversify beyond Treasuries, especially during a rate-cutting cycle [11] - The Vanguard Government Securities Active ETF (VGVT) primarily invests in Treasuries but also includes agency-backed securities, with a portfolio composition of 58.7% Treasuries as of September 30 [12] High Yield Opportunities - The Vanguard High-Yield Active ETF (VGHY) is introduced as a new option for investors seeking higher yields, with a competitive expense ratio of 0.22% [14]