Fixed income is a foundational element in Canadian client portfolios, serving as a stabilizing counterweight to equity exposure while generating income and managing overall portfolio risk. Yet building effective bond allocations presents ongoing challenges for advisors.
Constructing diversified fixed income exposure traditionally requires assembling multiple specialist mandates: government bonds, corporate credit, and potentially high-yield or emerging market allocations. At the same time, many advisors recognize that limiting fixed income exposure exclusively to traditional core bond sectors may constrain opportunity. A more flexible approach with an institutional-quality bond portfolio can help navigate interest rate environments and credit market dynamics while maintaining disciplined risk parameters.
Core-plus bond funds are built with a "core" allocation to intermediate-term, investment-grade bonds. While these funds primarily invest in investment grade government and corporate bonds, they have the flexibility to invest in high-yield and emerging markets in the "plus" component of the fund, within defined guardrails.
Core-plus funds share many risk characteristics with core bond funds yet have greater potential for alpha generation and higher yields in exchange for a moderate increase in risk.
VCOR (Vanguard Global Core Plus Bond ETF) is an actively managed bond fund that applies Vanguard's best ideas across global rates, credit, and securitized markets. The fund is designed to serve as the centerpiece of a fixed income portfolio, providing income and diversification with the flexibility to enhance returns by participating in high-yield and emerging market sectors.
Portfolio positioning reflects deliberate views across rates, yield curve, sectors, and security selection, with risk taken selectively where valuation and fundamentals are compelling. The strategy can increase exposure to higher-income and global opportunities when returns are attractive and decrease exposure when they aren’t.
Keeping costs low is a core part of Vanguard's investment philosophy. In active fixed income, lower fees reduce the performance hurdle a manager must overcome when seeking to deliver excess returns. This means the investment team can focus on pursuing attractive opportunities through disciplined security selection and sector allocation, without needing to take additional risk simply to offset higher costs.
With a management fee of 0.25%, VCOR is the lowest-cost Global Core Plus Fixed Income ETF in Canada1. The portfolio management team seeks to generate excess returns through disciplined security selection and sector allocation while maintaining a prudent risk profile.
Vanguard Fixed Income Group is among the world's largest fixed income managers, supported by a deep bench of investment professionals. The team draws on the expertise of sector specialists across rates, credit, and securitized markets globally, allowing it to pursue opportunities wherever relative value is most attractive..
VCOR offers an all-in-one portfolio that expands beyond core, providing a comprehensive solution to accessing diversified bond market exposure. Rather than assembling separate mandates for core bonds, high-yield credit, and emerging market debt, advisors can access these sectors through a single actively managed allocation.
Clear risk parameters and consistent portfolio behavior across all market environments make the fund easier to understand and integrate into portfolios. Vanguard's true-to-label approach emphasizes straightforward product design intended to reflect the primary risks and opportunities investors expect from the asset class.
For Canadian advisors seeking to simplify fixed income implementation while maintaining comprehensive bond market exposure, VCOR represents a strong foundation for portfolio construction.
1 Based on Morningstar’s Canada Fund Global Core Plus Fixed Income category, as of July 31, 2026.
Commissions, management fees, and expenses all may be associated with investment funds. Investment objectives, risks, fees, expenses, and other important information are contained in the prospectus; please read it before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. Vanguard funds are managed by Vanguard Investments Canada Inc. and are available across Canada through registered dealers.
Publication date: October 2026
The information contained in this material may be subject to change without notice and may not represent the views and/or opinions of Vanguard Investments Canada Inc.
The management fee is equal to the fee paid by the Vanguard fund to Vanguard Investments Canada Inc. and does not include applicable taxes or other fees and expenses of the Vanguard fund. (For any Vanguard fund which invests in underlying Vanguard fund(s), there shall be no duplication of management fees chargeable in connection with the Vanguard fund and its investment in the Vanguard fund(s).
Certain statements contained in this material may be considered "forward-looking information" which may be material, involve risks, uncertainties or other assumptions and there is no guarantee that actual results will not differ significantly from those expressed in or implied by these statements. Factors include, but are not limited to, general global financial market conditions, interest and foreign exchange rates, economic and political factors, competition, legal or regulatory changes and catastrophic events. Any predictions, projections, estimates or forecasts should be construed as general investment or market information and no representation is being made that any investor will, or is likely to, achieve returns similar to those mentioned herein.
While the information contained in this material has been compiled from proprietary and non-proprietary sources believed to be reliable, no representation or warranty, express or implied, is made by The Vanguard Group, Inc., its subsidiaries or affiliates, or any other person (collectively, "The Vanguard Group") as to its accuracy, completeness, timeliness or reliability. The Vanguard Group takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this material.
This material is not a recommendation, offer or solicitation to buy or sell any security, including any security of any investment fund or any other financial instrument. The information contained in this material is not investment advice and is not tailored to the needs or circumstances of any investor, nor does the information constitute business, financial, tax, legal, regulatory, accounting or any other advice.
The information contained in this material may not be specific to the context of the Canadian capital markets and may contain data and analysis specific to non-Canadian markets and products.
All investments are subject to risk, including the possible loss of principal. Foreign investing involves additional risks, including currency fluctuations and political uncertainty.
The information contained in this material is for informational purposes only and should not be used as the basis of any investment recommendation. Investors should consult a financial, tax and/or other professional advisor for information applicable to their specific situation.
In this material, references to "Vanguard" are provided for convenience only and may refer to, where applicable, only The Vanguard Group, Inc., and/or may include its subsidiaries or affiliates, including Vanguard Investments Canada Inc.
