VSDM

Vanguard Short Duration Tax-Exempt Bond ETF

$76.47

+0.00%

Market closed. Last update: 10:57 PM ET

📎 Investment Objective

The Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) seeks to provide current income that is exempt from federal personal income taxes, while limiting interest rate risk through investing in short-term municipal bonds.

Overview

ETF tracking Vanguard Short Duration Tax-Exempt Bond ETF

Category Fixed Income

Issuer Vanguard

Inception Date 2024-11-21

Market Cap $203.4M

Average Volume N/A

Dividend Yield 2.52%

52-Week Range $74.32 - $76.86

VWAP $76.49

Performance

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Investment Summary

📎 Investment Objective

🎯 Investment Strategy

The ETF invests in a diversified portfolio of high-quality, short-term municipal bonds with an average maturity of 1-5 years. The fund aims to track the performance of the S&P 0-5 Year National AMT-Free Municipal Bond Index, which includes investment-grade municipal bonds with remaining maturities of less than 5 years.

✨ Key Features

Focuses on short-term municipal bonds to limit interest rate risk
Seeks to provide tax-exempt income for investors in the United States
Diversified portfolio of high-quality municipal bonds
Low expense ratio of 0.00%

⚠️ Primary Risks

Interest rate risk: As interest rates rise, the value of the fund's bonds may decline
Credit risk: The fund is exposed to the risk of default by the issuers of the municipal bonds
Liquidity risk: The municipal bond market may experience periods of low liquidity, which could affect the fund's ability to sell its holdings
Tax risk: Changes in tax laws or adverse determinations by tax authorities could affect the tax-exempt status of the municipal bonds

👤 Best For

This ETF may be suitable for investors seeking tax-exempt income and lower interest rate risk, such as those in higher tax brackets or with a shorter investment horizon. It is generally considered a conservative investment option within the fixed income asset class.