New corporate bond index funds from Vanguard

06 November 2017 | Topical insights


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Vanguard has expanded its range of low-cost fixed income products with the launch of two UCITS corporate bond funds.

The Vanguard Global Corporate Bond Index Fund offers simple, low-cost access to investment grade debt issued by companies in both developed and developing markets worldwide. The Vanguard Global Short-Term Corporate Bond Index Fund is a passive option for investors seeking exposure to 1-5 year duration corporate bonds.

Bonds play a critical role as a diversifier and a source of income in investors' portfolios. Both funds track Bloomberg Barclays' indices.

The new UCITS funds provide high quality, low-cost access to global investment grade corporate bonds, with an ongoing charges figure (OCF) of 0.25% for investor share classes, and 0.20% for institutional.

This latest offering expands Vanguard's range of broadly diversified active and passive fixed income core "building blocks".

Vanguard's fixed income products are managed by Vanguard's Fixed Income Group, a global leader in fixed income investing, with more than US $1.2 trillion (about £920 billion) in assets under management globally as at 31 July 2017.


Global Corporate Bond Index Fund

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The material contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this document is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of [units/shares] of, and the receipt of distribution from any investment.

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested. 

The funds invest in securities which are denominated in different currencies. The value of these investments may fall or rise as a result of change in exchange rates.

Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.

The funds may invest in financial derivative instruments that could increase or reduce exposure to underlying assets and result in greater fluctuations of the fund's net asset value. Some derivatives give rise to increased potential for loss where the fund's counterparty defaults in meeting its payment obligations.

Vanguard Investment Series plc has been authorised by the Central Bank of Ireland as UCITS and has been registered for public distribution in certain EU countries. Prospective investors are referred to the Funds' prospective for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing shares of the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.

The Manager of Vanguard Investment Series plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Series plc. 

For further information on the funds' investment policy, please refer to the Key Investor Information Document (KIID).  The KIID and the Prospectus for these funds is available from Vanguard via our website at

Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority.