Vanguard is well known for our index funds, but here's something you may not know. Vanguard is one of the world's largest active fixed income fund managers. Our 40 years of experience have honed a time-tested trifecta. Our active team, our process, and our low fees, which enable our differentiated approach to risk taking, have delivered strong outcomes for our clients. It starts with our team.
In our active business, we have about 150 portfolio managers, traders, and research analysts worldwide, specializing in all publicly traded fixed income sectors. That allows for a depth of expertise across the bond market. Rather than relying on concentrated risk positions, our managers deploy a diversified set of strategies that we believe offers our clients a better chance of investment success. Our process thrives on close collaboration and specialized skill.
Portfolio managers marry the macroeconomic trends with the perspectives from the sector analysts, creating an optimal approach for each fund. Simultaneously, our analysts and traders actively pursue the best opportunities in the markets they cover. And, our low expense ratios allow us to take a differentiated approach when taking risks. Given our low fees, we have an asymmetric advantage to deliver net outperformance to our clients.
When the risk reward outlook appears less attractive, for example, when a recession may be on the horizon, we could take a more defensive approach in credit. We don't have to take significant risks through all market environments just to try to deliver outperformance above our fees. And when the market presents attractive opportunities, our specialized teams are intent on finding the best course to implement across our portfolios. Taken together, our active fixed income team, process, and low fees have enabled Vanguard to deliver strong outcomes for our clients.
