Vanguard Plans CAD-Hedged U.S. High-Yield Bond ETF

Vanguard has filed for the Vanguard U.S. High-Yield Corporate Bond Index ETF (VUHY CN), a CAD-hedged fund with a 0.30% management fee. The ETF will provide exposure to a broad portfolio of U.S. below-investment-grade corporate bonds by tracking the Bloomberg U.S. High Yield $250MM 2% Issuer Capped Index (CAD Hedged). The fund will invest directly or indirectly in high-yield bonds and use derivatives to hedge U.S. dollar exposure, offering Canadian investors access to the U.S. junk bond market while reducing currency risk.