Vanguard has introduced two innovative dynamic asset allocation fixed income model portfolios: Vanguard Fixed Income Risk Diversification and Vanguard Fixed Income Total Return. These portfolios are designed to provide financial advisors with low-cost, high-quality, and broadly diversified investment solutions. 

The Vanguard Fixed Income Risk Diversification, with a weighted average expense ratio of 0.05%, seeks to outperform the Bloomberg U.S. Aggregate Index. It offers advisors and clients global investment-grade bond exposure to mitigate equity market volatility. 

The Vanguard Fixed Income Total Return, with a weighted average expense ratio of 0.08%, targets outperformance of the Bloomberg U.S. Universal Index. It balances wealth accumulation with risk diversification through exposure to global investment-grade and high-yield bonds. 

Both portfolios are dynamically adjusted throughout the year based on 10-year forecasts from the Vanguard Capital Markets Model (VCMM). The investment strategy group oversees asset allocation, while the fixed income group manages the underlying fixed income funds. 

Brent Beardsley, head of advisor solutions at Vanguard, stated, “Model portfolios empower financial advisors with streamlined investment manager research and ongoing portfolio construction and monitoring, so they can spend time on the things that really matter to their clients—like ensuring they’re meeting their investment goals.” 

Vanguard’s fixed income group manages $2.6 trillion in assets.