Vanguard Files ETF Share Class for Existing Emerging Markets Bond Fund

Vanguard has filed to add an ETF share class to an existing actively managed emerging markets bond mutual fund. The Vanguard Emerging Markets Bond Active ETF Shares (VEMB) invests at least 80% of assets in bonds tied to emerging market issuers, including sovereign and corporate debt across all maturities and credit qualities. The portfolio may hold a majority of below-investment-grade or defaulted bonds, with most exposure denominated in or hedged to the U.S. dollar alongside selective local-currency positions. The nondiversified fund may concentrate by country or region and uses derivatives extensively to manage interest rate, currency, credit, and market exposure.