VALLEY FORGE, PA — Vanguard has unveiled two new active municipal ETFs, expanding its offerings for investors seeking tax-exempt income. The Vanguard Core Tax-Exempt Bond ETF (VCRM) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) are managed by Vanguard’s Fixed Income Group and promise diversified exposure to municipal bonds across sectors, states, and credit qualities.
Designed with long-term performance in mind, these ETFs aim to outperform their benchmarks while offering competitive cost structures. Both funds come with an expense ratio of 0.12%, significantly lower than the industry averages for similar products.
The Vanguard Core Tax-Exempt Bond ETF provides broad access to high-quality municipal bonds, making it ideal for investors focusing on central, tax-exempt allocations in their portfolios. It is managed by Stephen McFee, a seasoned professional with over 20 years of experience at Vanguard, who has previously led several successful fixed income funds.
For those seeking shorter-term options, the Vanguard Short Duration Tax-Exempt Bond ETF offers investment in high-quality, short-duration municipal bonds. This fund is intended for investors looking to minimize interest rate exposure while enjoying tax-exempt income. Adam Ferguson, who has been managing municipal funds for more than two decades, oversees this new offering.
“These new ETFs combine our top-tier active fixed income capabilities with our expert municipal bond team,” said Sara Devereux, Global Head of Vanguard Fixed Income Group. “The Core Tax-Exempt Bond ETF will serve as a central building block for tax-exempt allocations, while the Short Duration ETF adds depth to short-term strategies.”
The launch builds on Vanguard’s active fixed income lineup, which already includes the Vanguard Core Bond ETF (VCRB) and Vanguard Core-Plus Bond ETF (VPLS). Positioned to complement Vanguard’s existing index municipal ETFs, these new funds provide active alternatives for investors seeking more strategic exposure to the municipal bond market.
With these offerings, Vanguard continues to deliver top-quality investment options that balance cost efficiency and expertise, helping investors achieve their financial goals.
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