Vanguard has launched a new exchange-traded fund (ETF) to give European investors diversified access to the US dollar-denominated high yield bond market.
Vanguard USD High Yield Corporate Bond UCITS ETF will track the Bloomberg US High Yield $250MM 2% Issuer Capped index which targets corporate bonds rated below investment grade.
Claire Aley, head of product and PRD in Europe, said: “The US dollar high yield market is the largest segment of the global high yield corporate bond market and an important building block in a comprehensive fixed income offering.
“We are launching Vanguard the USD High Yield Corporate Bond UCITS ETF now to give investors low-cost, diversified access to an important source of income at a time when many are looking to enhance portfolio income, manage duration risk and broaden diversification.”
The fund, which has an ongoing charges figure of 0.15%, is the latest edition to Vanguard’s UCITS ETF range, which covers different global, regional and market capitalisation exposures.
It will be listed across several markets, including the London Stock Exchange.
Vanguard has also made several fee reductions across its suites of funds over the past two years, which have delivered estimated investor savings of over $80m.