Exchange-traded Funds 

Vanguard launches corporate bond ETF

Vanguard launches corporate bond ETF

Vanguard have launched a passive ETF which will invest in short dated corporate bonds.

Vanguard USD Corporate One to Three-year Bond Ucits ETF will be listed on the London Stock Exchange and the Deutsche Börse.

Investors get low-cost access to short-dated, investment grade corporate debt, across a range of industries and sectors.

The ETF tracks the Bloomberg Barclays Global Aggregate Corporate: USD One to Three-year index and carries an ongoing charges figure (OCF) of 0.15 per cent. 

Vanguard now offers 24 Ucits ETFs listed on the London Stock Exchange.

Paul Gibson, an adviser at Granite Financial Planning in Aberdeen, said: “The launch of another ETF is normally as exciting as receiving another General Data Protection Regulation (GDPR) email. A new fund launch from Vanguard is, however, different and they really continue to shake-up the UK market.

"For asset allocators this does merit consideration as it has a different investment strategy and is very costs efficient. Well worth a look.”

david.thorpe@ft.com