Vanguard High-Yield Active ETF(CBOE:VGHY)

VGHY focuses on corporate bonds rated below investment grade or judged comparable in quality by the advisor. It emphasizes short- to intermediate-maturity bonds and loans but can also hold investment-grade corporates, US Treasury securities, preferred stocks, convertibles, and floating- or fixed-rate loans to maintain flexibility. The strategy relies on detailed credit research and sector allocation to balance risk across lower-rated issuers and may use derivatives to adjust exposures. Liquidity, spread, and default risk are inherent in this market, and these considerations shape the funds approach.