Vanguard High-Yield Active ETF (VGHY)

Vanguard High-Yield Active ETF (VGHY) is an actively managed exchange-traded fund that invests primarily in U.S. corporate bonds rated below investment grade. These high-yield securities offer higher interest income in exchange for greater credit risk than investment-grade debt.

Vanguard's fixed income team uses fundamental credit research to select issuers and bonds, generally emphasizing the higher-quality tiers of the high-yield market and diversification across industries. The fund seeks a high level of current income, and its returns are influenced by interest rates, credit spreads and default trends. Diversification across many issuers is intended to limit the effect of any single default on the portfolio.

The fund is managed by The Vanguard Group, headquartered in Malvern, Pennsylvania.