Vanguard Further Expands Financial Advisors' Toolkit with Two New Fixed Income Model Portfolios

VALLEY FORGE, Pa., Oct. 27, 2025 /PRNewswire/ -- Vanguard today announced the launch of two new dynamic asset allocation fixed income model portfolios, further strengthening its suite of investment solutions tailored for financial advisors. Vanguard Fixed Income - Risk Diversification Tax-Aware Model and Vanguard Fixed Income - Income Focused Model, reflect Vanguard's ongoing commitment to delivering low-cost, diversified strategies that help advisors leverage fixed income investment products to meet a broad range of client objectives.

"Fixed income continues to be a key component in helping investors achieve stability, generate income, and diversify their portfolios," said Amma Boateng, Managing Director of Financial Advisor Services at Vanguard. "Our two new fixed income model portfolios are designed to address a variety of client needs, from income generation to tax management, while maintaining the disciplined and low-cost investment approach that defines Vanguard."

The latest fixed income model portfolios from Vanguard

Vanguard Fixed Income - Risk Diversification Tax-Aware Model is designed for advisors whose clients seek risk diversification for a total portfolio with a focus on after-tax returns. The model provides investors with a fixed income portfolio meant to act as a ballast in an equity market decline. The model provides exposure to high-quality credit and municipal bonds and will change allocations on a semi-annual basis to reflect the shifting forecasts of the Vanguard Capital Markets Model® (VCMM).

Vanguard Fixed Income - Income Focused Model is designed for investors seeking an elevated level of income from their bond holdings. The model provides investors the opportunity to generate higher yields versus the broad U.S. fixed income market by maintaining higher allocations to credit, emerging markets, and below investment grade bonds. The model provides exposures to global investment-grade and high-yield bonds and will change allocations on a quarterly basis to reflect the shifting forecasts of the VCMM.

The new models follow Vanguard's 2025 introductions of the Fixed Income Risk Diversification and Fixed Income Total Return models in April, and the Fixed Income Capital Preservation and Fixed Income Active Total Return models in July. Combined with today's news, these launches represent a comprehensive expansion of Vanguard's model portfolio offerings, designed to meet the evolving needs of financial advisors and their clients.

Building on Vanguard's four-decade legacy

Vanguard's Fixed Income Group brings over four decades of investment experience currently managing $2.7 trillion in assets as of August 31, 2025¹. The team's disciplined, differentiated approach to risk, combined with Vanguard's low-cost philosophy, has consistently delivered strong long-term outcomes for investors, as 85% of Vanguard's active fixed income funds outperformed their peer group averages over the past ten years². This deep expertise, now accessible through model portfolios, helps financial advisors to streamline portfolio construction and, therefore, helps enhance client satisfaction, retention, and referrals, according to Vanguard's Advisor's Alpha research.

Vanguard's dynamic model portfolios aim to outperform their respective benchmarks. Each portfolio in the lineup is designed to offer investors a broadly diversified, cost-effective, and high-quality solution that aligns with a variety of investment goals, time horizons, and risk tolerances.

About Vanguard
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to tens of millions of individual investors around the globe—directly, through workplace plans, and through financial intermediaries. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.

¹ Source: Vanguard. Data as of August 31, 2025.

² For the ten-year period ended September 30, 2025, 41 of 48 Vanguard active bond funds outperformed their peer group averages. Results will vary for other time periods. Only funds with a minimum ten-year history were included in the comparison. (Source: LSEG Lipper.) Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at www.vanguard.com/performance.

For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing. 

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.

Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. Investments in bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets. High-yield bonds generally have medium- and lower-range credit quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit quality ratings.

Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax.

Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.

Vanguard does not, and will not, make any representations about whether a model portfolio is in the best interest of any investor, is not, and will not be, responsible for the determination of whether a model portfolio is in the best interests of any investor, and is not acting as an investment advisor to any investor. It is the investment advisor's responsibility to determine the appropriateness of the model portfolios, or any of the securities included therein, for any client.

The Vanguard model portfolios are provided for illustrative and educational purposes only. The Vanguard model portfolios do not constitute research, are not personalized investment advice or an investment recommendation from Vanguard to any client of a third party financial professional and are intended for use only by a third party financial professional, with other information, as a resource to help build a portfolio or as an input in the development of investment advice for its own clients. Such financial professionals are responsible for making their own independent judgment as to how to use the Vanguard model portfolios.

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SOURCE Vanguard