MutualFundWire.com: The Low-Cost Leviathan Enters Active High-Yield Bond ETF Territory

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Wednesday, September 17, 2025

The Low-Cost Leviathan Enters Active High-Yield Bond ETF Territory

The team at the behemoth that Bogle built recently added to their $1.1-trillion-AUM active bond fund business by rolling out their first actively managed high-yield bond ETF last month.

Today, Michael Chang, head of high-yield portfolio management at Vanguard [profile], unveils the launch of the Vanguard High-Yield Active ETF (VGHY on the Cboe BZX Exchange, Inc.). Valley Forge, Pennsylvania-based Vanguard Group, Inc. will serve as the new fund's investment advisor, dividend-paying agent, and transfer agent.

VGHY's inception date was August 27. The new ETF's expense ratio is 22 basis points.

Chang, who is also a senior portfolio manager and principal at Vanguard, serves VGHY's sole PM. He puts the launch of VGHY in the context of what he describes as the fund firm's "decades-long commitment to disciplined credit investing."

"This ETF is powered by a deeply integrated team of credit analysts, traders, and risk specialists who collaborate daily to uncover value and manage risk across the high-yield landscape," Chang states. "Our goal is to deliver an actively managed solution that adapts dynamically to market conditions with precision and purpose to outperform its benchmark and peers."

VGHY is an actively managed series of Vanguard Fixed Income Securities Funds. The new ETF's other service providers include:

PricewaterhouseCoopers LLP as independent accounting firm;

State Street Bank and Trust Company as custodian; and

Vanguard Marketing Corporation as distributor.