Vanguard Launches BondBuilder™ Model Portfolio Suite

VALLEY FORGE, Pa., April 28, 2026 /PRNewswire/ -- Vanguard today announced the launch of a new suite of model portfolios constructed using Vanguard Target Maturity Corporate Bond ETFs (TMEs or BondBuilder™ TMEs), a lineup of 10 index ETFs designed to help investors build more precise and customizable fixed income portfolios.

"Financial advisors are being asked to deliver more personalized outcomes with greater efficiency," said Amma Boateng, managing director, Financial Advisor Services. "Intuitive and scalable fixed income portfolio construction through target maturity ETFs allows advisors to focus more time on improving client outcomes."

Each of the four perpetual TME-based bond ladder model portfolios is designed to help investors manage interest rate risk and credit risk.

"BondBuilder model portfolios are another way we're putting Vanguard's fixed income expertise to work for advisors—reducing operational complexity while helping them deliver better outcomes to more investors," said Eve Cout, head of advisor solutions, Financial Advisor Services.

What are BondBuilder model portfolios?

Vanguard will offer four TME bond ladder model portfolios spanning 0-3, 0-5, 0-7, and 0-10-year maturity ranges. Each provides the diversification, liquidity, and trading efficiency of ETFs and the features of defined maturities traditionally associated with individual bonds. Each ladder is constructed using one Vanguard Target Maturity Corporate Bond ETF for each year in the ladder and is equal weighted across maturity rungs, consistent with traditional bond ladder construction.

Approaching the maturity of the earliest-dated ETF, assets will be reallocated to the next furthest-dated ETF for the respective ladder, maintaining a perpetual ladder structure without the need to buy individual bonds.

BondBuilder model portfolios offer:

• Consistency: Investors know when capital is expected to be reinvested.
• Diversification: Each ETF typically holds more than 100 investment‑grade corporate bonds across issuers and sectors.
• Low minimums and scalability: The models make laddered bond strategies accessible to more clients.
• Operational simplicity: Model portfolios free up advisor time to spend building client relationships.
• Cost efficiency: Vanguard's approach offers a competitively low expense ratio, reinforcing its long‑standing commitment to low costs.

For more information about the BondBuilder model portfolio suite, visit advisors.vanguard.com.

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.

For more information about Vanguard funds and Vanguard ETFs, 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.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

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.

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.

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.

The Target Maturity ETFs (TMEs) are term funds that will liquidate in December of the year in each TME's name. During the 12 months prior to the planned liquidation date, each TME's yield generally will tend to move toward prevailing money market rates.

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.

Vanguard Marketing Corporation, Distributor.

SOURCE Vanguard