Vanguard Expands Fixed Income Portfolio Models for FAs  

Vanguard has expanded its fixed income model portfolios, further allowing financial advisors to gain more exposure to suite offerings. 

The two fixed income models include the Income Focused Model and the Risk Diversification Tax-Aware Model, which are both designed to help advisors better serve their clients’ growing demands, which may range from higher yields and helping clients manage their taxes. 

The Income Focused Model is aimed at investors who are seeking to produce additional income from their bond holdings. The model provides access to credit, emerging markets, and below investment-grade bonds, with updates to allocations on a quarterly basis. 

The method will aim to deliver higher yields compared to the broader U.S. fixed income market, while still offering global diversification, Vanguard said. 

The Risk Diversification Tax-Aware Model is geared towards clients that are seeking to shield their portfolios against declines in the equity market, with a focus on after-tax returns. The model allocates high-quality credit and municipal bonds, and its allocations will be adjusted twice a year, resulting to forecasts from Vanguard’s capital markets model. 

Recently, Vanguard rolled out the Vanguard Fixed Income Capital Preservation and Vanguard Fixed Income Active Total Return models, which supports advisors in optimizing client outcomes through diversified and actively managed fixed income allocations.