IVA QUICK TAKE | Vanguard’s Junk Bond Index ETF Finally Arrives

The fund giant rounds out its high-yield lineup—filling a long-standing gap—with a plain-vanilla index ETF.

Vanguard has added a third junk bond fund to investors’ toolkit.

Today, the fund giant launched U.S. High-Yield Corporate Bond Index ETF (VCHY). As the name suggests, it's a straightforward index fund. Managers Joshua Barrickman and Manuel Hayes aim to track the Bloomberg US High Yield $250MM 2% Issuer Capped Index—a mouthful that boils down to a diversified basket of larger, more liquid junk bonds with limits on issuer concentration.

With the ETF’s arrival, Vanguard investors now have three ways to access junk bonds:

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