Vanguard has launched its Target Maturity Corporate Bond ETF suite, comprising 10 index ETFs designed to help investors construct more precise and customizable fixed income portfolios. Branded as BondBuilder TMEs, the new funds carry an expense ratio of 0.08%, making them the lowest-cost target maturity ETFs available.
The suite offers flexible, goals-based income solutions with targeted maturity exposures. When combined, the TMEs provide an alternative to bond ladders and separately managed accounts, blending ETF diversification, liquidity, and trading efficiency with the defined maturity features of individual bonds. The funds help investors manage interest rate risk and credit risk while streamlining portfolio construction.
Portfolio management is led by Joshua Barrickman and Jake Riley of Vanguard Capital Management’s Fixed Income Group Global Bond Indexing team, each with over 20 years of industry experience.