Vanguard is known for its cheap index funds. The company has a smaller, solid lineup of active funds. The Vanguard Core-Plus Bond ETF is one such fund, focusing on high-quality bonds. VPLS compares favorably to its benchmark, BND, on most key metrics, with a higher 4.5% dividend yield outperformance since inception.
The capital markets weren't blindsided by the U.S. Federal Reserve's third and final rate cut of 2025. While the majority of markets are cheering the quarter-point cut, a contingent of fixed-income investors could jeer at the prospect of yields falling with more cuts to come in 2026.
Vanguard Core Plus Bond ETF (VPLS) offers a flexible, actively managed bond strategy with global diversification and selective high-yield exposure for today's environment. VPLS balances U.S. investment-grade, corporate, and foreign bonds, providing yield opportunities while maintaining a quality tilt and limiting credit risk. The fund is well-positioned for a potential Fed easing cycle, with enough duration to benefit from lower rates and credit spreads that remain supportive.
On Wednesday, Vanguard expanded its fixed income ETF selection with the launch of three new funds. For folks looking to outperform the Treasury market, the Vanguard Government Securities Active ETF (VGVT) may be an attractive new option.
The Vanguard Core-Plus Bond ETF is an actively managed fund focusing on investment-grade U.S. bonds, with selective exposure to below-investment-grade and emerging market debt. VPLS has outperformed the iShares Core U.S. Aggregate Bond ETF by over 150 bps since inception, thanks to active management and strategic bond selection. The ETF's intermediate duration of 5.8 years and 4.9% 30-day SEC yield make it attractive in today's high-rate environment.
VPLS is an actively managed ETF focusing on investment-grade bonds. It is quite similar to its benchmark, with a slightly higher yield, returns, and credit risk. VPLS is a solid investment, albeit vanilla, without any significant benefits or downsides.
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the Vanguard Core Plus Bond ETF (VPLS) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF overall.
VettaFi's Head of Research Todd Rosenbluth discussed the Vanguard Core Plus Bond ETF (VPLS) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the Fixed Income Channel.
High-quality bonds are becoming more attractive after a bear market. Vanguard Core-Plus Bond ETF offers a diversified portfolio with government and AAA rated holdings. The VPLS fund has exposure to emerging markets, which adds some volatility but also potential upside.