ETF Evaluator:
Vanguard High-Yield Active ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in High Yield Bond Over the Last Year
| 7.6% | Fidelity Sustainable High Yield ETF (FSYD) |
| 7.4% | Horizon Flexible Income ETF (FLXN) |
| 6.7% | iShares Interest Rate Hdg Hi Yld Bd ETF (HYGH) |
| 6.6% | Fidelity Enhanced High Yield ETF (FDHY) |
| 6.3% | Harbor Ares Systematic High-Yield ETF (SIHY) |
Risk
Index
Risk
Index
ETF Details
Vanguard High-Yield Active ETF Overview
Vanguard High-Yield Active ETF (VGHY) is an actively managed Taxable Bond High Yield Bond exchange-traded fund (ETF). Vanguard launched the ETF in 2025.
The investment seeks to provide a high level of current income.
The fund employs an active management approach, investing primarily in a diversified group of high-yielding, higher-risk corporate bonds with medium- and lower-range credit quality ratings (commonly known as “junk” bonds). Under normal circumstances, it invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in corporate bonds that are rated below Baa by Moody’s or the equivalent by another independent rating agency, or, if unrated, are determined to be of comparable quality by the fund’s advisors.
About Vanguard High-Yield Active ETF (VGHY)
There are 1 members of the management team with an average tenure of 0.87 years: Michael Chang (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
Vanguard High-Yield Active ETF has 567 securities in its portfolio. The top 10 holdings constitute 8.9% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Vanguard High-Yield Active ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Vanguard High-Yield Active ETF has 12.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.2% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.6% (86.0% domestic bond, 12.6% foreign bond and 0.0% convertible bond). Vanguard High-Yield Active ETF has 1.2% of the portfolio in cash.
Assets Under Management
The fund has $306 million in total assets, which is below the $1 billion average for the High Yield Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VGHY Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard High-Yield Active ETF expense ratio is below average compared to funds in the High Yield Bond category. Vanguard High-Yield Active ETF has an expense ratio of 0.22%, which is 45% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard High-Yield Active ETF has a portfolio turnover rate of 20%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 69% for the High Yield Bond category.
Recently, in the month of July 2026, Vanguard High-Yield Active ETF returned -0.3%, which earned it a grade of D, as the High Yield Bond category had an average return of -0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Vanguard High-Yield Active ETF has a trailing yield of 0.00%, which is below the 6.77% category average.
The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard High-Yield Active ETF Grades
Year to date, the ETF has returned 1.6%, 0.1 percentage points worse than the category, which translates into a grade of D.
For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Vanguard High-Yield Active ETF, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
VGHY Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VGHY Return (NAV) | -0.3% | 0.4% | na | na | na | na |
| VGHY Return (Price) | -0.1% | 0.4% | na | na | na | na |
| NAV +/- Price Return | -0.167% | -0.019% | na | na | na | na |
| High Yield Bond Avg | -0.2% | 0.5% | 5.0% | 7.8% | 3.8% | 5.0% |
| VGHY Grade (NAV) | D | D | na | na | na | na |
| +/- Category (NAV) | -0.1% | -0.2% | na | na | na | na |
| VGHY Tax-Cost Ratio | na | na | na | na | na | na |
VGHY Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VGHY Return (NAV) | 1.6% | na | na | na | na | na | na | na | na | na | na |
| VGHY Return (Price) | 1.6% | na | na | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | 0.042% | na | na | na | na | na | na | na | na | na | na |
| High Yield Bond Avg | 1.7% | 8.4% | 7.5% | 12.4% | -10.1% | 4.2% | 6.1% | 13.4% | -2.3% | 7.1% | 13.0% |
| VGHY Grade (NAV) | D | na | na | na | na | na | na | na | na | na | na |
| +/- Category | -0.1% | na | na | na | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | na |
| R-Squared: | na |
| Standard Deviation: | na |
| Category Risk Index: | na |
| Category Risk Rating: | |
| Total Risk Index: | na |
| Total Risk Rating: | |
| Portfolio Characteristics | |
| Yield: | -- |
| Total Assets: | $ 307 Mil |
| Share Class Assets: | $ 307 Mil |
| Turnover: | 20.0% |
| Expense Ratio: | 0.22% |
| Index Fund: | No |
| Index Tracked: | N/A |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 0.9 years | |||
| Average Tenure: 0.9 years | |||
| Managers (Year): Chang Michael (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 567 |
| % in Top 10 Holdings: | 8.9% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 12.6% |
Portfolio Allocation |
|
| Domestic Stock: | 0.2% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 86.0% |
| Foreign Bond: | 12.6% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.2% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Vanguard |
| Phone Number: | 866-499-8473 |
| Website: | www.vanguard.com |
| Inception Date: | September 16, 2025 |
Expenses and Fees
| Expense Ratio (%): | 0.22% (Rating: Below Avg) |
| Category Average Expense Ratio (%): | 0.40% |
