Why We Upgraded Vanguard Core Bond ETF

Expanded fixed-income resources and a seasoned management team lifted Vanguard Core Bond ETF’s VCRB People Pillar rating to Above Average and elevated its Morningstar Medalist Rating to Silver from Bronze.

Managers Brian Quigley and Daniel Shaykevich, co-leaders of this exchange-traded fund since its December 2023 launch, each have more than two decades of experience. Quigley, with the firm since 2003, heads the mortgage-backed securities and agencies team, while Shaykevich, who joined from BlackRock in 2013, leads emerging markets. Both collaborate with Arvind Narayanan, a 23-year veteran and head of investment-grade corporates since joining from State Street in 2019. Their sector expertise, supported by Vanguard’s extensive fixed-income resources—including more than 60 analysts, traders, and quantitative analysts, plus dedicated risk oversight—provides this diversified portfolio an edge over peers.

The strategy combines top-down macro analysis with bottom-up credit research, anchored by a disciplined risk management framework. Managers set duration, yield-curve positioning, and sector tilts, collaborating closely with sector specialists for security selection on a sector level. They keep duration near that of the Bloomberg US Aggregate Float Adjusted Index, avoiding outsize interest rate bets, but may adjust by up to half a year. Vanguard Core Bond ETF also stands out for its strong liquidity among intermediate core bond ETFs, offering tighter average bid-ask spreads and higher trading volume than most peers.

Key Morningstar Metrics for Vanguard Core Bond ETF

Morningstar Medalist Rating: Silver

Process Pillar: Above Average

People Pillar: Above Average

Parent Pillar: High

An Impressive Team of Tech Investors

Increased conviction in T. Rowe Price Global Technology’s PRGTX team prompted a People Pillar upgrade to Above Average and boosted its Morningstar Medalist Rating to Bronze from Neutral.

Dominic Rizzo, an experienced technology investor, leads the strategy as its sole portfolio manager. He combines an energetic, passionate personality with disciplined decision-making, ensuring a consistent approach. Rizzo also leverages the expertise of T. Rowe Price’s research team, where frequent analyst collaboration fosters diverse perspectives, strong idea generation, and a balance of fresh talent with seasoned continuity.

Recently, Rizzo adjusted the portfolio’s technology allocations by increasing exposure to semiconductors and hardware, key enablers of artificial intelligence, while trimming software holdings, which he views as more vulnerable to AI-driven disruption. These changes position the portfolio well to benefit from the anticipated AI revolution.

Key Morningstar Metrics for T. Rowe Price Global Technology

Morningstar Medalist Rating: Bronze

Process Pillar: Average

People Pillar: Above Average

Parent Pillar: High

Enhanced Risk Guidelines

VanEck Global Resources Fund’s GHAAX improved risk management guardrails led to a Process Pillar upgrade to Average and increased its Morningstar Medalist Rating to Neutral from Negative.

In September 2019, the team addressed past performance challenges and shifts in the natural-resources opportunity set by introducing enhanced risk guidelines. Those included revised target allocation ranges for sectors and industries: 20%–50% each for energy, metals/mining, and agriculture, and 0–15% for other stocks. While the core research and valuation-driven process remained intact, these adjustments aim to improve consistency without increasing the strategy’s aggressiveness relative to peers.

Lead manager Shawn Reynolds leads this lean yet experienced team. Deputy manager Charles Cameron and a group of seven analysts and a commodities strategist support Reynolds.

Key Morningstar Metrics for VanEck Global Resources Fund Class A

Morningstar Medalist Rating: Neutral

Process Pillar: Average

People Pillar: Average

Parent Pillar: Below Average