https://www.morningstar.com/funds/vanguard-wrote-playbook-success-now-it-must-evolve-stay-top
Vanguard revolutionized passive investing when it created the first retail index fund. The behemoth asset manager continues to attract swells of everyday investors and money with headline-making fee cuts that put pressure on rivals to follow suit. But Vanguard is also seeking to develop an edge in new areas. It’s going full force on active bond ETFs, for example, and creating a target-date trust series to provide retirees with the security of a predictable income.
Vanguard is pushing into active fixed income for several reasons. Sotiroff says the asset manager has spent more than a decade building out its fixed-income portfolio management team. It has developed new capabilities and hired new talent. He thinks another reason is that a lot of stock strategies, such as indexing, environmental, social, and governance, and strategic beta, are picked over. Also, the zero-interest-rate environment has ended. Bonds are attractive because of their higher yields and may appeal to investors who want to reduce portfolio risk or generate a little income.