Vanguard To Enter Junk Bond ETF Race: Low-Cost VCHY Set To Challenge HYG, JNK Dominance

benzinga_article
2026.03.23 20:57
portai
I'm LongbridgeAI, I can summarize articles.

Vanguard is set to launch its first junk bond ETF, VCHY, in June, aiming to compete with established funds like HYG and JNK. The ETF will track Bloomberg's US High Yield $250MM 2% Issuer Capped Index and is expected to offer lower fees, consistent with Vanguard's strategy. This move comes as high-yield bonds have shown strong returns, with an 8.62% return in 2025. Vanguard's entry reflects a strategic focus on fixed income, following the launch of 15 bond-focused funds last year.