Higher yields have changed the bond equation. What comes next?
Introducing VCOR: A Global Core-Plus Fixed Income Solution
To help advisors navigate an increasingly complex fixed income landscape, Vanguard recently launched Vanguard Global Core Plus Bond ETF (VCOR), bringing Vanguard’s active fixed income expertise to Canada as an ETF for the first time. The actively managed strategy combines a core allocation to investment-grade bonds with selective exposure to global credit, high-yield, and emerging market debt.
The “core” component is designed to provide a high-quality foundation for diversification during equity market stress, while the “plus” component expands opportunities for income and total return through exposure beyond traditional core bond benchmarks.
With a maximum allocation limit of 25% to below-investment-grade securities, the strategy occupies a middle ground between traditional core bond portfolios and potentially higher-risk multisector approaches. The result is a portfolio designed to balance equity diversification, income generation, and long-term total return potential, making it a compelling core fixed income allocation within a broader multi-asset portfolio.
The fixed income environment has changed considerably since the low-yield conditions that preceded 2022. Higher starting yields do not eliminate price volatility of bonds, but they provide investors with more income and a stronger foundation from which to pursue long-term returns. VCOR is designed around that objective, combining a high-quality core with measured flexibility to access opportunities across global fixed income markets.
Disclaimer:
Commissions, management fees, and expenses all may be associated with investment funds. Investment objectives, risks, fees, expenses, and other important information are contained in the prospectus; please read it before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. Vanguard funds are managed by Vanguard Investments Canada Inc. and are available across Canada through registered dealers.
Publication date: October 2026
The information contained in this material may be subject to change without notice and may not represent the views and/or opinions of Vanguard Investments Canada Inc.
The management fee is equal to the fee paid by the Vanguard fund to Vanguard Investments Canada Inc. and does not include applicable taxes or other fees and expenses of the Vanguard fund. (For any Vanguard fund which invests in underlying Vanguard fund(s), there shall be no duplication of management fees chargeable in connection with the Vanguard fund and its investment in the Vanguard fund(s).
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