Fund Report: The Vanguard Core Bond ETF (VCRB)

The Vanguard Core Bond ETF (VCRB) is a diversified, actively managed fixed-income strategy designed to deliver compelling total returns while outperforming the broad U.S. bond market. With a focus on high-quality securities and dynamic portfolio management, VCRB offers investors a robust option for core fixed-income exposure.

A Strategy Built on Expertise

VCRB is managed by a team of experienced portfolio managers, credit analysts and traders who employ a team-based approach to enhance value across fixed-income sectors. This actively managed strategy ensures a well-diversified portfolio that maintains a strong credit profile while seeking to capitalize on market opportunities.

Versatile and Reliable Investment Choice

As a cornerstone investment, VCRB can function as a standalone fixed-income solution or complement other strategies to enhance liquidity, increase income or meet specific investor preferences. Its versatility makes it suitable for various portfolio objectives, from income generation to risk diversification.

A Multi-Faceted Approach to Value Creation

VCRB’s investment strategy spans multiple fixed-income sectors, including investment-grade corporate bonds, structured products, government bonds and selective exposure to high-yield corporate and emerging market debt. The team leverages active strategies such as individual security selection, sector allocation and yield curve positioning to optimize returns.

Data-Driven Decision Making

A key component of VCRB’s success is its integration of proprietary and third-party technology and data analytics. This approach enhances decision-making, improves trade execution and ensures a disciplined, repeatable investment process. Additionally, risk management is embedded into the strategy, with oversight from an integrated risk team and the Senior Investment Committee.

Proven Performance in 2024

In its first full calendar year, VCRB demonstrated its ability to generate strong returns, delivering nearly 100 basis points of alpha over the Bloomberg U.S. Aggregate Bond Float Adjusted Index. Standardized performance can be found at VCRB - Vanguard Core Bond ETF. This performance placed the ETF in the top quartile of Morningstar’s Core Bond category, reinforcing its value as an active fixed-income investment¹. 
 

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at [[www.vanguard.com/performance]].  The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. 

A Vanguard Legacy of Fixed-Income Leadership

With nearly 50 years of experience in active fixed-income management and $470 billion* in assets under management, Vanguard continues to expand its expertise to ETF investors. The launch of the Core Bond ETF marks a significant milestone in Vanguard’s mission to bring world-class active fixed-income management to a broader audience at affordable costs.

Conclusion

The Vanguard Core Bond ETF (VCRB) is a premier choice for investors seeking a high-quality, actively managed bond strategy. By leveraging expert insights, strategic sector allocation and data-driven risk management, VCRB aims to provide consistent performance and superior value in the ever-evolving bond market. VCRB is also a finalist in the “Active ETF of the Year” category for the 2025 etf.com Awards. 

*As of December 31, 2024

¹ Morningstar percentile rank is among 473 core bond funds and ETFs as of December 31, 2024. Results will vary for other time periods. Only funds and ETFs that were publicly investable throughout 2024 were included in the comparison. Past performance is no guarantee of future returns. 

There may be other material differences between products that must be considered before investing.

For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing. 

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.

Investments in bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets. 

All investing is subject to risk, including possible loss of principal. 

Diversification does not ensure a profit or protect against a loss.

U.S. government backing of Treasury or agency securities applies only to the underlying securities and does not prevent share-price fluctuations. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest. 

High-yield bonds generally have medium- and lower-range credit quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit quality ratings.

© 2025 The Vanguard Group, Inc. All rights reserved.  

Vanguard Marketing Corporation, Distributor.