VGHY

About VGHY

Vanguard High-Yield Active ETF is an actively managed exchange-traded fund designed to provide diversified exposure to the U.S. high-yield corporate bond market. Its primary function is to generate a high level of income by investing mainly in below investment-grade corporate bonds—commonly referred to as “junk bonds”—which typically offer higher yields in exchange for increased credit risk. The ETF’s management team uses a combination of fundamental research and sector allocation strategies to identify opportunities and manage risk, with additional flexibility to invest in related sectors such as leveraged loans and investment-grade bonds when appropriate. Vanguard’s experienced Fixed Income Group manages the fund, leveraging collaborative credit analysis and robust risk oversight. With an estimated expense ratio of 0.22%, the fund aims for cost efficiency, notably lower than the average for its peer group, and targets modest outperformance of its high-yield benchmark. In the broader financial market, the ETF serves investors and institutions seeking professionally managed access to high-yield credit as a tool for income generation and portfolio diversification, while taking measured exposure to higher-risk credit segments.