News release
June 04, 2026
VALLEY FORGE, PA (June 4, 2026) – Vanguard today announced the launch of the Vanguard U.S. High‑Yield Corporate Bond Index ETF (VCHY), expanding its fixed income lineup with index‑based exposure to U.S. dollar-denominated high‑yield corporate bonds. The ETF is managed by Vanguard Capital Management’s Fixed Income Group, a global leader in bond indexing.
“The high-yield market is both sizable and growing in importance within fixed income portfolios, yet much of today’s exposure sits in higher-cost structures,” said Sara Devereux, CIO, Vanguard Capital Management, Global Head of Vanguard Fixed Income Group. “VCHY expands Vanguard’s ETF lineup with a low-cost, index-based approach to U.S dollar-denominated high-yield corporate bonds, designed to deliver broad, rules-based exposure with a focus on liquidity and precision. It provides investors with a clear and efficient way to help access high yield within a diversified portfolio.”
VCHY seeks to track the Bloomberg U.S. Corporate High Yield 250MM 2% Issuer Capped Index, a market‑value‑weighted benchmark that provides broad exposure to below‑investment‑grade U.S. corporate bonds while limiting issuer concentration. The index includes securities rated below investment grade. With an expense ratio of just 0.05%, at launch VCHY ranks among the lowest-cost ETFs in its category.1
“Investors need access to a range of high-quality, low-cost solutions to help them meet their income and diversification goals,” said Amma Boateng, managing director, Financial Advisor Services. “VCHY reflects our commitment to thoughtfully expanding our fixed income lineup with tools that allow advisors to incorporate high‑yield exposure into client’s portfolios while taking smart risks.”
Vanguard Capital Management’s Fixed Income Group oversees more than $2.9 trillion in global assets2 and has led bond indexing since launching the world’s first bond index fund in 1986. The team’s scale, technology, and disciplined investment processes support consistent, precise tracking across Vanguard’s fixed income offerings.
Joshua Barrickman and Manuel Hayes serve as the portfolio managers responsible for day‑to‑day management of the fund, each bringing more than two decades of experience in fixed income portfolio oversight.
1 Morningstar, Inc., as of March 31, 2026. The expense ratio information shown reflects estimated amounts for the current fiscal year.
2 Assets under management figures as of March 31, 2026.
About Vanguard
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to tens of millions of individual investors around the globe—directly, through workplace plans, and through financial intermediaries. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.
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Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
All investing is subject to risk, including the possible loss of the money you invest.
Diversification does not ensure a profit or protect against a loss.
Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline.
High-yield bonds generally have medium- and lower-range credit quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit quality ratings.
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