VALLEY FORGE, PA — Vanguard has announced the launch of two new municipal bond ETFs, bolstering its portfolio of tax-efficient investment options. The Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and the Vanguard New York Tax-Exempt Bond ETF (MUNY) are the latest additions to its lineup, offering low-cost and diversified access to municipal bond markets.
“Vanguard’s ongoing expansion of our bond ETF lineup empowers financial advisors and individual investors with low-cost, and highly diversified options to tap into the municipal bond market,” said Sara Devereux, Global Head of Vanguard Fixed Income Group. “The launch of VTEL and MUNY highlights our unwavering commitment to meeting the dynamic needs of investors who prefer the ETF wrapper for their bond investments.”
VTEL is designed for those seeking exposure to longer-duration municipal bonds, offering a blend of tax efficiency, low fees, and trading flexibility. MUNY, meanwhile, provides a targeted solution for tax-sensitive investors residing in New York. Both offerings feature an industry-leading expense ratio of 0.09%, appealing to investors with a preference for passive management strategies.
The introduction of these ETFs also aligns with Vanguard’s broader efforts to provide tailored solutions for diverse investor needs. VTEL extends the firm’s national tax-exempt product range, enabling investors to construct comprehensive municipal bond portfolios. MUNY complements state-specific offerings, joining Vanguard’s California-focused ETF, and aims to serve residents in high-tax states.
The launch brings Vanguard’s municipal bond lineup to a total of 24 products, showcasing a mix of six index ETFs, two active ETFs, 12 active mutual funds, one index mutual fund, and three money market funds. “These ETFs bring together our unparalleled institutional-quality municipal bond expertise with some of the lowest costs in the industry, setting a new standard in the market,” added Devereux.
Through these latest innovations, Vanguard reaffirms its role as a leader in offering cost-effective, high-quality investment products that meet the evolving needs of individual and institutional investors alike.
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