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INVESTMENT STRATEGIES

Fixed income
overview

Why the bond market is tough to crack

Capturing value consistently in the bond market isn't easy—it's complex, opaque, and significantly larger than the equity market. Equities are relatively clear to understand. They come in defined forms, prices follow company performance, and you can find them on large exchanges accessible to all. Bonds, on the other hand, come in limitless forms, each with unique terms, ratings, and maturities. They're negotiated between parties rather than on exchanges, have complex pricing structures, and are often less liquid than equities. This means that large institutions with the teams to understand them and the balance sheets to weather the storms have historically had a distinct advantage. 

Complexity becomes our edge

When you're accountable for participants' outcomes, confidence in your fixed income decisions isn't optional.

Watch this before your next lineup conversation.

The success of our fixed income investing is the direct result of our collaborative investment team, integrated risk management, and unique client focus. Sara Devereux CIO VCM, Global Head of Fixed Income

Vanguard's fixed income advantage

We’re working to shift the balance with institutional-quality2 bond funds you can offer to all investors—funds that are built by a deep bench of experts to deliver consistent results. 

Our formula for institutional quality2

Four pillars. One uncompromising standard.

Our formula to help achieve institutional quality rests on four essential pillars: deep expertise, consistent performance, bold idea sharing across portfolios, and a performance and cost multiplier. Explore the strength behind each pillar—and the results they drive.

Featured retirement plan products

VBTIX
Vanguard Total Bond Market Index Fund Institutional Shares
EXPENSE RATIO
0.025%
as of April 29, 2025
VCOBX
Vanguard Core Bond Fund Admiral Shares
EXPENSE RATIO
0.10%
as of January 28, 2026
VCPAX
Vanguard Core-Plus Bond Fund Admiral Shares
EXPENSE RATIO
0.20%
as of January 28, 2026

Ready to explore our full complex of fixed income products?

View all fixed income funds
Active Fixed Income
Collaborative culture, top talent, and unique client focus. A firm structure and scale that enable us to keep costs low.
Learn more about active fixed income
Index Fixed Income
With more than 40 years of experience in bond indexing, Vanguard Fixed Income Group has the investing acumen to offer the products to help your participants invest wisely.
Learn more about index fixed income

Fixed income insights

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Disclosures and notes

1 All competitor fund data sourced from Morningstar Direct as of December 2025. Vanguard's fixed income asset weighted average expense ratio calculated by multiplying fixed income fund assets (source: Morningstar as of December 2025) by the updated expense ratios (source: internal data effective February 2, 2026) and dividing by total assets. Competitor asset weighted average expense ratio calculated by multiplying fixed income fund assets by expense ratios (source: Morningstar as of December 2025) and dividing by total assets. Calculating Vanguard discount by (1 - Vanguard Avg. / Competitor Avg.) = 85% lower.

2 “Institutional quality” in this context is meant to convey a level of professional rigor and expertise combined with low costs.

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.

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.

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.