Vanguard and UBS launch new bond funds
Vanguard has created a Global Government Bond Index fund while UBS has brought two new portfolios to market.
- Jonathan Jones
- 2 min reading time
Source: Trustnet
Vanguard has launched the Vanguard Global Government Bond Index fund – the firm’s seventh fixed income portfolio to be created in Europe this year.
It will track the Bloomberg Global Treasury Developed Countries Float Adjusted index and will be hedged to reduce currency risk.
The ongoing charges figure (OCF) of all share classes will be 0.14% and the fund will complement the Vanguard Global Government Bond UCITS ETF launched earlier this year, providing investors with a choice of investment wrappers.
Mark Fitzgerald, head of product specialism at Vanguard Europe, said: “When it comes to fixed income it can be tempting for investors to invest locally. However, underscored by recent market events, the added breadth of a global allocation can help diversify risk.
“By adding a global government bond fund, investors gain exposure to more securities, different inflation and economic environments, as well as different business cycles, from a wider range of markets.”
Vanguard’s fixed income suite of funds manages more than $2.6trn of assets, with the latest launch increasing the number of options available to investors to 40.
Meanwhile, Swiss asset management firm UBS has launched two new exchange-traded funds (ETFs) this morning.
The UBS EUR Treasury Yield Plus UCITS ETF and UBS USD Treasury Yield Plus UCITS ETF aim to outperform their respective Bloomberg indices by targeting higher option-adjusted spread (OAS), while maintaining similar duration, credit quality and country exposure to the benchmarks.
They will use high-quality sovereign, supranational and agency (SSA) bonds, which can offer a higher yield than government bonds.
André Mueller, head of client coverage at UBS AM, said: “The rapidly increasing assets in enhanced fixed income ETFs signals growing investor demand for funds that go beyond traditional passive benchmarks.”
The funds will be available across Europe, as well as in the UK, and will have an OCF of 0.15%.
Important legal information
Lloyds and Lloyds Bank are trading names of Halifax Share Dealing Limited. The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Registered in England and Wales no. 3195646. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.
The information contained within this website is provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd unless otherwise stated. The information is not intended to be advice or a recommendation to buy, sell or hold any of the shares, companies or investment vehicles mentioned, nor is it information meant to be a research recommendation. This is a solution powered by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd incorporating their prices, data news, charts, fundamentals and investor tools on this site. Terms and conditions apply. Prices and trades are provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd and are delayed by at least 15 minutes.
Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.
© 2025 Refinitiv, an LSEG business. All rights reserved.