Vanguard Finally Files for Junk Bond ETF Nearly Two Decades Later

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Vanguard has filed for a new junk bond ETF, the US High-Yield Corporate Bond Index ETF (VCHY), nearly two decades after competitors launched similar funds. Expected to launch in June, the ETF will track Bloomberg’s US High Yield $250MM 2% Issuer Capped Index. This move reflects Vanguard’s strategy of entering markets late with lower costs and also appears to fill gaps in its product lineup, particularly in fixed-income offerings.

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