Vanguard announced today the launch of the Vanguard USD High Yield Corporate Bond Fund, an actively managed, low-cost mutual fund that provides investors with access to a broad range of high-yield corporate bonds, primarily issued by U.S. companies. As explained, the Vanguard USD High Yield Corporate Bond Fund aims to deliver total return (capital appreciation plus income) exceeding that of its benchmark index, the Bloomberg US High Yield 2% Issuer Cap Index, through disciplined securities selection and rigorous risk management. The fund also possesses the flexibility to invest in select off-benchmark opportunities, including leveraged loans, when managers identify attractive investment opportunities. Domiciled in Ireland, the fund offers U.S. dollar share classes, both accumulating and distributing, with an ongoing charges figure (OCF) of 0.25%¹.
Claire Aley, Head of Product and PRD for Europe, commented: “We know that investors are seeking fixed-income solutions that help them generate income without significantly increasing portfolio complexity. This fund offers access to an established segment of the bond market through a straightforward actively managed approach at a very competitive cost.”
Michael Chang, Head of High Yield and lead portfolio manager of the Vanguard USD High Yield Corporate Bond Fund, stated: “Investing successfully in high yield demands discipline and selectivity. Our approach is grounded in rigorous credit research, disciplined securities selection, and an unwavering 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.”
The fund will be managed by Vanguard’s Fixed Income Group, one of the world’s largest bond investment managers. The team combines specialized expertise in economics, interest rates, credit research, trading, portfolio construction, and risk management, managing over 3 trillion dollars in fixed-income assets globally. Its investment philosophy centers on rigorous analysis, disciplined portfolio construction, and strict risk control, aiming to deliver value to long-term investors.
¹Source: Vanguard, as of October 27, 2026. The ongoing charges figure (OCF) includes management fees and service costs, such as administration, audit, depositary, legal counsel, and registration fees, as well as operational fund expenses.
