VALLEY FORGE, PA —< Vanguard recently launched Vanguard Short-Term Tax-Exempt Bond ETF (Ticker: VTES). The new municipal bond index ETF is managed by Vanguard Fixed Income Group and is designed for tax-sensitive investors with a short-term time horizon and low-interest rate risk tolerance.
“Vanguard Short-Term Tax-Exempt Bond ETF is built to optimize tax efficiency for investors seeking to allocate to the shorter end of the municipal bond market,” said Sara Devereux, global head of Vanguard Fixed Income Group. “The new ETF complements our broad fixed income lineup and provides clients with another avenue to tap our municipal bond team’s talent and capabilities.”
Vanguard Short-Term Tax-Exempt Bond ETF predominantly invests in short-term investment grade municipal bonds and will track the S&P® 0-7 Year National AMT-Free Municipal Bond Index. The ETF has an expense ratio of 0.07%, compared to 0.56% for the average short-term bond fund.1 Steve McFee, CFA® who has been at Vanguard for 18 years, is the portfolio manager of Vanguard Short-Term Tax-Exempt Bond ETF.
All figures as of January 31, 2023, unless stated otherwise.
1 Source: Morningstar as of January 31, 2023
2 For the ten-year period ended December 31, 2022, 80 of 90 Vanguard bond funds outperformed their peer group averages; results will vary for other time periods. Only funds with a minimum ten-year history were included in the comparisons. (Source: Lipper, a Thomson Reuters Company) Note that this competitive performance data represents past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at www.vanguard.com/performance.
3 Vanguard Short-Term Tax-Exempt Bond Fund, which is a multi-share class fund that includes Vanguard Short-Term Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) and VTEB had net assets of $26.6 billion as of December 31, 2022. VTEB had a 5-year tracking error of 0.09% as of December 31, 2022. See the fund’s profile page for more information. Past performance does not guarantee future results.
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