Vanguard is bringing its fixed income portfolio construction expertise to financial advisors through the launch of the firm’s first dynamic asset allocation fixed income model portfolios. Available today, Vanguard Fixed Income Risk Diversification and Vanguard Fixed Income Total Return join the firm’s lineup of model portfolios that provide financial advisors with access to broadly diversified, low-cost, and high-quality Vanguard-managed solutions.
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“Model portfolios empower financial advisors with streamlined investment manager research and ongoing portfolio construction and monitoring, so they can spend time on the things that really matter to their clients—like ensuring they’re meeting their investment goals,” said Brent Beardsley, Head of Advisor Solutions for Vanguard. “We’re excited to expand our model portfolio lineup with the launch of our first dynamic asset allocation fixed income models and leverage Vanguard’s investment and portfolio management expertise to support financial advisors in managing core fixed income assets for their clients.”
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Built to serve a variety of investment time horizons and risk profiles, Vanguard’s model portfolios support financial advisors’ portfolio construction needs so they can spend more time scaling their practice and deepening client relationships. Deeper client relationships lead to improved client loyalty and trust, according to Vanguard’s Advisor’s Alpha research, which can then assist with asset retention and referrals.
Vanguard’s new fixed income models
Vanguard Fixed Income Risk Diversification and Vanguard Fixed Income Total Return model portfolios seek to outperform a market-capitalization-weighted benchmark—the Bloomberg U.S. Aggregate Index and Bloomberg U.S. Universal Index respectively—and allocations are recalibrated throughout the year to align with the Vanguard Capital Markets Model (VCMM) 10-year forecasts. Vanguard’s Investment Strategy Group oversees the asset allocations for the models and Vanguard’s Fixed Income Group manages the fixed income funds included in each portfolio.
The Vanguard Fixed Income Risk Diversification model portfolio features a weighted average expense ratio of 0.05% and is constructed for advisors and their clients in search of a highly diversified fixed income portfolio with exposure to global investment grade bonds intended to provide ballast against equity market volatility.
Vanguard Fixed Income Total Return model portfolio is designed for advisors and clients seeking wealth accumulation and risk diversification from the fixed income sleeve of their portfolio. This model portfolio contains exposure to global investment grade and high yield bonds at a weighted average expense ratio of 0.08%.
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Forty years of active fixed income expertise
For over four decades, Vanguard Fixed Income Group has set itself apart through its deep investment expertise, meticulous security selection, and stringent risk management, consistently delivering strong, long-term performance. Vanguard’s Fixed Income Group manages $2.6 trillion in assets under management and comprises a sophisticated and experienced active fixed income team who espouses a differentiated approach to risk taking.1 That approach, combined with Vanguard’s signature low fees, has delivered strong outcomes for investors over the long term—91% of Vanguard active fixed income funds outperformed their peer group averages over the past ten years ended 3/31/25.2
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Source – PR Newswire
