Vanguard to Launch Seven New Bond Index Funds and ETFs
New funds will track the government, corporate, and mortgage-backed securities sectors.
Vanguard will add to its lineup of traditional open-end bond index funds and ETFs later this year with three new funds tracking broad benchmarks for government bonds, three tracking broad benchmarks for corporate bonds, and one new fund aping a mortgage-backed securities index.
The fund launches, which Vanguard announced Tuesday, will expand the family's passive fixed-income stable of ETFs and regular funds to 12 each. Like all of Vanguard's ETFs, the new offerings will be share classes of the open-end funds. The new funds also mark Vanguard's first foray into stand-alone government, corporate, and MBS sector index funds. The traditional mutual fund shares of the new funds, however, likely will be off-limits to most retail investors because the offerings will require a $1 million minimum investment. That's a higher minimum investment than the $100,000 Vanguard requires for its open-end equity sector index funds.
Dan Culloton does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.