The same macro factors affecting the equities market, such as tariffs, geopolitical factors, and a changing interest rate policy are also affecting the fixed income markets. With that, there's never been a better time to access active fixed income strategies that help advisors and investors navigate the murky macro environment. Vanguard has nine active ETF options that can work for any investor, depending on their specific fixed income goals. It's been a memorable year for active ETFs overall with a record ...

Core Insights - Vanguard is expanding its active ETF offerings with the launch of three new equity funds, increasing its active equity lineup to eight funds, reflecting a strategic shift to meet current market demands for active management [1][4][8] Active Equity ETFs - The new funds include the Vanguard Wellington U.S. Value Active ETF (VUSV), Vanguard Wellington U.S. Growth Active ETF (VUSG), and Vanguard Wellington Dividend Growth Active ETF (VDIG), all advised by Wellington Management [1][4] - VUSV focuses on value investing with an expense ratio of 0.30%, VUSG targets growth with an expense ratio of 0.35%, and VDIG emphasizes dividend growth with an expense ratio of 0.40% [11] Active Fixed Income ETFs - Vanguard is also enhancing its active fixed income offerings, launching four new funds this year, bringing the total to nine active fixed income funds [3] Management Expertise - The new active funds leverage Vanguard's 50 years of active management experience and the long-standing partnership with Wellington Management, which has been in place since 1928 [5][6] Investment Strategy - The active management strategy allows portfolio managers to adjust holdings based on market conditions, aiming to optimize returns while managing risks [5][7] - The new funds are designed to work together, providing investors with a diversified portfolio through a mix of different investment styles [8]

Core Insights - Vanguard has achieved $315.9 billion in inflows as of November 11, marking a 30% increase compared to the same period last year [1] - Year-to-date inflows have surpassed the total inflows for the previous year, with more than a month remaining in the year [1] Inflows and Performance - October was a record month for Vanguard, with over $50 billion in inflows, contributing to a total of $166 billion in net new assets for the entire ETF marketplace [3] - U.S. equity ETFs received the majority of inflows, followed by taxable bond funds, while international ETFs also showed strong performance [3] Product Offerings - Vanguard's leading funds this year include the Vanguard S&P 500 ETF (VOO) and the Vanguard Total Stock Market ETF (VTI), reflecting the company's strategy of low-cost passive funds [2] - Vanguard has expanded its active ETF offerings in the fixed income sector, launching several new products including the Vanguard Short Duration Bond ETF (VSDB) and the Vanguard High-Yield Active ETF (VGHY) [6][7] Market Trends - Vanguard is maintaining a strong presence in passive funds while also shifting towards active management, particularly in the fixed income market [5] - The complexities of the fixed income market necessitate active management, and Vanguard's new active ETFs aim to meet diverse investor needs [7]

Core Insights - The article discusses the financial behavior of Americans in the context of high inflation and their focus on building cash reserves for 2026, with 84% of respondents actively saving through emergency funds and high-yield savings accounts [1][2]. Group 1: Consumer Behavior and Confidence - A significant majority, just over 80%, of respondents express confidence in achieving their financial goals for the upcoming year [2]. - Different generations are prioritizing their cash needs, indicating a tailored approach to savings across age groups [2]. Group 2: Savings Strategies - Americans are encouraged to utilize the end of the year to reassess their savings strategies, with a focus on high-yield savings vehicles that can significantly outperform traditional bank accounts [3]. - Vanguard's Cash Plus Account is highlighted as a high-yield option, offering returns more than eight times greater than average traditional savings accounts [3]. Group 3: Investment Options for Cash Needs - Short-term bond ETFs are recommended as effective tools for meeting future cash obligations, providing liquidity, tax efficiency, and cost-effectiveness [5]. - Specific ETFs such as Vanguard 0-3 Month Treasury Bill ETF (VBIL), Vanguard Ultra-Short Treasury ETF (VGUS), Vanguard Short Duration Bond ETF (VSDB), and Vanguard Short-Term Bond Index Fund ETF Shares (BSV) are suggested for their low expense ratios and indexed exposure to short-duration bonds [6].

Core Insights - Fixed income ETFs are experiencing significant growth, with record inflows totaling $325 billion as of October 15, driven by funds like Vanguard Total Bond Market ETF (BND) and Vanguard Total International Bond ETF (BNDX) [1] Inflows and Performance - Vanguard's BND attracted $15 billion in inflows, serving as a core bond option that tracks the Bloomberg U.S. Aggregate Float Adjusted Index, making it suitable for a 60/40 stock-bond portfolio [2] - BNDX also saw substantial inflows of over $9 billion, indicating increased interest in international assets as the U.S. dollar declines; it tracks the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index [4] Active Management Options - For those seeking an actively managed bond option, the Vanguard Core Bond ETF (VCRB) offers a 30-day SEC yield of 4.42% with a higher expense ratio of 10 basis points compared to BND's 3 basis points [3] - Vanguard has launched several new active fixed income ETFs, including the Vanguard High-Yield Active ETF (VGHY), expanding its active ETF lineup to nine funds [6] Future Outlook - The fixed income ETF market is expected to continue attracting investor capital, with 2025 marking a record year for active ETF launches; Vanguard is adapting by increasing its active fund offerings [5][7]

Core Insights - Short-term bond funds have outperformed the core index, making them a favorable alternative during periods of persistent inflation, with an average return of 5.10% over the past year [1] - Over the last three years, short-term bond funds returned an annualized rate of 4.77%, compared to the Morningstar US Core Bond Index's return of 2.69% [2] Performance Comparison - The Morningstar US Core Bond Index has returned 2.54% over the last 12 months, 2.69% annually over the last three years, and has lost 0.73% annually over the last five years [2] - The selected short-term bond funds were chosen based on their performance over one-, three-, and five-year periods, all exhibiting active management [2] Active Management Importance - With the U.S. Federal Reserve's divided stance on interest rate policy, active management is crucial for bond exposure [3] - Vanguard offers two active short-term bond funds that are recommended for consideration [3] Fund Characteristics - The Vanguard Short Duration Bond ETF (VSDB) is designed for fixed income investors seeking to maximize yield while remaining in investment-grade debt, mitigating interest rate risk and price volatility [4] - VSDB has a low expense ratio of 0.15%, making it competitive with passive fund peers [5] Municipal Bond Option - The Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) provides a blend of yield and credit quality for those interested in active short-term municipal bond exposure [6] - VSDM offers federal tax-free income and has an even lower expense ratio of 0.12% [7] Expertise Leverage - Both VSDB and VSDM leverage the expertise of the Vanguard Fixed Income Group, which has been managing active funds for nearly 50 years [8]