Yet another actively managed bond ETF from Vanguard is coming—I suspect more are on the way.
This morning, Vanguard filed with the SEC to launch an ETF version of Multi-Sector Income (VMSIX and VMSAX). Technically a separate fund (a distinct legal entity from the mutual fund), the ETF is set to debut in June under the ticker VGMS. It will carry a 0.30% expense ratio—matching the cost of the Admiral shares and coming in 0.15% cheaper than the Investor shares.
As I recently described Multi-Sector Income as an “up-and-comer,” I think this will be a nice addition to Vanguard’s ETF lineup. Given the firm offers ETF versions of Core Bond (VCRB) and Core-Plus Bond (VPLS), it was also a reasonably obvious launch.
However, the most interesting aspect of this ETF (in my opinion) is that it opens the door for Vanguard to launch a junk bond ETF and an ETF version of its diamond-in-the-rough Emerging Markets Bond (VEMBX).
But before I get too far ahead of myself, here’s a little more on the Multi-Sector Income strategy: