Vanguard High-Yield Active ETF in registration

Comments

• WABAC

  July 2 edited July 4

  Not too surprising. VEIRIX has been whupping VYM for years.
  
  Mistook a bond fund for an equity fund. I was under the weather that day.
• msf

  July 4 edited July 4

  Will it outperform VWEAX?
  
  The funds have similar principal investment strategies.
  
  ETF:

  The Fund invests primarily in a diversified group of high-yielding, higher-risk corporate bonds—commonly known as “junk bonds”—with medium- and lower- range credit quality ratings. Under normal circumstances, the Fund invests at least 80% of its net assets plus the amount of any borrowings for investment purposes in corporate bonds that are rated below Baa by Moody’s Ratings; have an equivalent rating by any other independent bond rating agency; or, if unrated, are determined to be of comparable quality by the Fund’s advisor.

  OEF (prospectus):

  The Fund invests primarily in a diversified group of high-yielding, higher-risk corporate bonds—commonly known as “junk bonds”—with medium- and lower-range credit quality ratings. The Fund invests at least 80% of its assets in corporate bonds that are rated below Baa by Moody’s Ratings have an equivalent rating by any other independent bond rating agency; or, if unrated, are determined to be of comparable quality by the Fund’s advisors

  Main difference (aside from distribution channel) seems to be that Vanguard (Michael Chang) will be the sole manager of the ETF, while management of VWEAX is split with Vanguard (Chang) managing 1/3 and Wellington (Elizabeth Shortsleeve) managing 2/3 (per M*).
  
  Also, the ETF is projected to cost 10 basis points more than VWEAX, i.e. the same cost as VWEHX.