I haven't seen an official press release yet, but based on SEC filings and that the fund's profile is up on Vanguard's website (here), it looks like the fund giant has, at long last, given us a junk bond ETF—High-Yield Active ETF (VGHY). Too bad junk bonds have rarely looked this expensive.
For years, the absence of a high-yield bond ETF has been a glaring hole in Vanguard’s lineup. The surprise isn’t the launch—it’s the structure. Instead of indexing the market, Vanguard has gone active.
The new ETF sits alongside Vanguard’s long-running High-Yield Corporate (VWEHX). Both are actively managed, but with one key difference: The new ETF is run solely by Vanguard, while the mutual fund is a joint effort between Vanguard and Wellington.
Costs? The ETF charges 0.22%, the same as the Investor shares (VWEHX) of the mutual fund. But the $50,000-minimum Admiral shares (VWEAX) cost just 0.12%—a reminder that ETFs aren’t always the cheapest option.
The Big Question
How bold will Vanguard be?