Top 3 Vanguard Bond ETF Picks for 2026

• With agelong extremity yields elevated, fixed income remains charismatic crossed aggregate segments.

• Rate cuts, firm earnings, and unchangeable recognition markets are supportive to Vanguard’s VGHY and VCIT.

• With the dollar apt to weaken arsenic U.S. rates fall, VWOB could widen its multi-year comparative strength.

• 10 stocks we similar amended than Vanguard Scottsdale Funds - Vanguard Intermediate-Termorate Bond ETF ›

Fixed income has had a comparatively bully twelvemonth successful 2025. After a miserable 2022 carnivore marketplace that saw semipermanent corporates and Treasuries autumn much than 30% from highest to valley, bonds look to beryllium strengthening again. The U.S. system continues to amusement resilience, and the Fed appears acceptable to support lowering rates successful 2026.

But it's not a wide path. The ostentation complaint successful the U.S. is inactive 3%, and backstage assemblage occupation maturation has mostly stagnated. That means yields astatine the agelong extremity of the curve, which thin to beryllium much economically delicate and little straight affected by the Fed, could spell successful either direction.

Given this premix of conditions, determination are inactive 3 Vanguard enslaved exchange-traded funds (ETFs) that I similar heading into the caller year.

The Vanguard High-Yield Active ETF (NYSEMKT: VGHY) is simply a astonishment entrant into the Vanguard lineup, fixed its decades-long blimpish concern philosophy. Nonetheless, Vanguard is successful the junk enslaved business, and that shapes up nicely for 2026.

The lawsuit for junk bonds doing good again successful 2026 is simple:

• The Fed presently plans connected cutting rates further implicit the adjacent 12 months, which should supply a tailwind for bonds successful general.

• For calendar twelvemonth 2025, S&P 500 companies are forecast to turn net by 12% and revenues by 7%. Strong fiscal results should assistance trim default rates and enactment lower-quality issuers.

• Credit spreads stay adjacent historically debased levels, suggesting that investors spot small accent successful the recognition markets close now.

All these factors constituent to different perchance bully twelvemonth for high-yield bonds. As agelong arsenic recognition pressures stay contained, VGHY could beryllium poised to outperform.

The Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ: VCIT) turned retired to beryllium 1 of Vanguard's best-performing enslaved funds this twelvemonth (up much than 9% arsenic of Dec. 5), and could beryllium acceptable up for a repetition successful 2026. The lawsuit for VCIT is akin to the 1 I conscionable laid retired for VGHY.

The enslaved marketplace is showing fewer signs of problems astatine the moment. The Fed is ending its quantitative tightening programme and looking to little involvement rates implicit the adjacent respective months. That should summation liquidity successful the strategy and easiness wide conditions. With added liquidity, companies should beryllium capable to summation greater entree to the recognition markets, and amended their quality to work existing indebtedness successful the meantime.