VCRB ETF

Anxiety is starting to fill the bond market. That's because the capital markets are expecting fewer rate cuts amid a hotter-than-expected economy.

Vanguard Core Bond ETF offers broad exposure to U.S. investment-grade bonds, including U.S. Treasury, mortgage-backed, and corporate bonds, with active management. The VCRB ETF's portfolio emphasizes high-quality fixed income securities, with over 51% in U.S. Government bonds and more than 98% rated BBB or above. With an expense ratio of just 0.10%, VCRB is cost-effective compared to peers, and its active management allows strategic moves in changing market conditions.

On a global scale, more investors are continuing to turn to active exchange-traded funds (ETFs) in 2024. That said, Vanguard has a pair of bond options if fixed income investors are looking to get active with their portfolio.

Active bond funds are having a strong year, according to data from Morningstar. If the trend persists, Vanguard has a pair of options to consider if fixed income investors want to get more active with their core bond exposure.

More inflows into active bond ETFs during the month of June is following the overall trend of higher inflows since the start of the year. That said, it's an ideal time to get core exposure with the added flexibility of active management with a pair of Vanguard ETFs.

Despite the prospect of rate cuts, higher-for-longer interest rates continue to add a dose of uncertainty into the bond markets. But investors are responding by turning to active management strategies to quell any anxiety.

Vanguard has brought on board a former executive from BlackRock, signaling the close-knit nature of the ETF industry.

Rising Treasury yields are delaying rate cuts, with experts suggesting they may not occur until the end of the year. This could create potential for active bond funds in the current macroeconomic environment.

Amid a 2023 market rally, exchange-traded fund (ETF) inflows had a banner year, putting the mutual fund industry further on notice that ETF popularity continues to grow exponentially. Furthermore, the move toward ETFs should increase investor exposure to active funds that focus on bonds.