OREANDA-NEWS. December 07, 2017. Vanguard today opened Vanguard Emerging Markets Bond Fund to all investors, offering broad, actively managed exposure to emerging fixed income markets.

The fund was launched in March 2016, with Vanguard as its sole investor. It invests predominantly in U.S. dollar-denominated debt issued by governments in emerging markets and government-owned enterprises in those markets.

"The Emerging Markets Bond Fund further broadens our active and global fixed income lineup," said John Hollyer, global head of Vanguard Fixed Income Group, the fund's advisor. "The fund is a more specialized offering supported by a globally integrated team of experienced investment professionals in the United States, London, and Hong Kong."

The fund uses the J.P. Morgan EMBI Global Diversified Index as its benchmark and invests in governments and government-owned enterprises of all sizes in emerging market countries, including Mexico, Russia, China, Turkey, and Indonesia. The fund also has limited ability to invest in out-of-benchmark emerging market sectors such as emerging market corporate bonds and local currency bonds.

Two low-cost share classes of the fund are now available for purchase:

Share class Ticker Estimated expense ratio (as of the current prospectus) Purchase/Redemption fees
Admiral™ Shares VEGBX 0.45% None
Investor Shares VEMBX 0.60% None

Vanguard believes that properly diversified investor portfolios should contain broad exposure to the fixed income market, whether the portfolios are actively or passively managed.