Vanguard Expands European ETF Range With U.S. Dollar High Yield Bonds

Vanguard has launched the Vanguard USD High Yield Corporate Bond UCITS ETF, expanding its European fixed-income range with exposure to dollar-denominated corporate debt rated below investment grade. The fund tracks the Bloomberg US High Yield $250MM 2% Issuer Capped Index and carries an ongoing charges figure of 0.15%. Vanguard says it is the lowest-cost fund in Morningstar’s European-domiciled UCITS USD High Yield Bond category, based on the applicable peer group. Accumulating and distributing share classes will list on the London Stock Exchange, Deutsche Börse, Borsa Italiana, Euronext Amsterdam and SIX Swiss. Trading currencies include U.S. dollars in London, euros on the three eurozone exchanges, and dollars and Swiss francs on SIX. The launch adds a low-cost option for investors seeking high-yield income and broader bond diversification while taking on below-investment-grade credit exposure.