Vanguard launches USD high yield UCITS ETF at 0.15% charge

Vanguard's USD High Yield Corporate Bond UCITS ETF carries an ongoing charges figure of 0.15%, ETF Express reported on Oct. 8. Vanguard describes that as the lowest cost in Morningstar's European-domiciled UCITS USD High Yield Bond category, based on the applicable peer group. The comparison set and share class were not specified.

The Vanguard ETF tracks the Bloomberg US High Yield $250MM 2% Issuer Capped Index, giving exposure to US dollar-denominated corporate bonds rated below investment grade.

Vanguard says the ETF will be listed on the London Stock Exchange, Deutsche Börse, Borsa Italiana, Euronext Amsterdam and SIX Swiss. The announcement does not include a first trading date or seed size.

Claire Aley, Vanguard's head of Product and PRD Europe, said the USD high yield market is the largest segment of the global high yield corporate bond market and an important building block in a broad fixed income offering. She said the fund is launching to give investors low-cost, diversified access to an income source at a time when many are looking to lift portfolio income, manage duration risk and widen diversification.