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Vanguard Launches Rock-Bottom-Fee Bond ETF That Goes Beyond the Basics

MarketDash Editorial Team
2 days ago
Vanguard just debuted BNDP, a core-plus bond ETF with exposure to high-yield and emerging market debt, charging just 0.05% — the lowest expense ratio in its category.

Vanguard just launched a bond ETF for investors who want the safety of core fixed-income exposure but aren't satisfied with the plain vanilla stuff. Enter Vanguard Core Plus Bond Index ETF (BNDP), which hit the market today with something rare in asset management: a genuinely eyebrow-raising price advantage.

What Makes BNDP Different?

This isn't your standard aggregate bond fund. BNDP tracks the Bloomberg U.S. Universal Float Adjusted Index, which casts a wide net across the U.S. taxable bond universe. We're talking U.S. Treasurys, investment-grade corporates, securitized bonds, high-yield corporates, and even emerging-market debt. It's designed as a one-stop shop for diversified bond exposure with a little extra juice from riskier credit.

But here's where Vanguard really makes its move: the expense ratio comes in at just 0.05%. That makes BNDP the cheapest ETF in its category — no small feat in a market where bond fund fees still range all over the place.

Josh Barrickman, co-head of Fixed Income Indexing for the Americas and the fund's manager, said that BNDP brings investors "a solution that spans the full spectrum of U.S. taxable fixed income, including high-yield and emerging market debt." He added that the fund offers enhanced income potential "while maintaining the rigor and discipline Vanguard is known for."

Barrickman isn't new to this. He's part of the Vanguard team managing more than $2.7 trillion globally — the same group that pioneered the industry's first bond index fund.

For investors looking to anchor their portfolios with bonds but capture a bit more yield than a standard aggregate index would deliver, BNDP just became a serious option worth considering.

Back to News

Vanguard Launches Rock-Bottom-Fee Bond ETF That Goes Beyond the Basics

MarketDash Editorial Team
2 days ago
Vanguard just debuted BNDP, a core-plus bond ETF with exposure to high-yield and emerging market debt, charging just 0.05% — the lowest expense ratio in its category.

Vanguard just launched a bond ETF for investors who want the safety of core fixed-income exposure but aren't satisfied with the plain vanilla stuff. Enter Vanguard Core Plus Bond Index ETF (BNDP), which hit the market today with something rare in asset management: a genuinely eyebrow-raising price advantage.

What Makes BNDP Different?

This isn't your standard aggregate bond fund. BNDP tracks the Bloomberg U.S. Universal Float Adjusted Index, which casts a wide net across the U.S. taxable bond universe. We're talking U.S. Treasurys, investment-grade corporates, securitized bonds, high-yield corporates, and even emerging-market debt. It's designed as a one-stop shop for diversified bond exposure with a little extra juice from riskier credit.

But here's where Vanguard really makes its move: the expense ratio comes in at just 0.05%. That makes BNDP the cheapest ETF in its category — no small feat in a market where bond fund fees still range all over the place.

Josh Barrickman, co-head of Fixed Income Indexing for the Americas and the fund's manager, said that BNDP brings investors "a solution that spans the full spectrum of U.S. taxable fixed income, including high-yield and emerging market debt." He added that the fund offers enhanced income potential "while maintaining the rigor and discipline Vanguard is known for."

Barrickman isn't new to this. He's part of the Vanguard team managing more than $2.7 trillion globally — the same group that pioneered the industry's first bond index fund.

For investors looking to anchor their portfolios with bonds but capture a bit more yield than a standard aggregate index would deliver, BNDP just became a serious option worth considering.