VTEC

Vanguard California Tax-Exempt Bond ETF

$100.14

+0.00%

Market closed. Last update: 10:52 PM ET

📎 Investment Objective

The Vanguard California Tax-Exempt Bond ETF seeks to provide current income that is exempt from both federal and California personal income taxes, while preserving capital.

Overview

ETF tracking Vanguard California Tax-Exempt Bond ETF

Category Fixed Income

Issuer Vanguard

Inception Date 2024-01-30

Market Cap $1.3B

Average Volume N/A

Dividend Yield 2.60%

52-Week Range $95.75 - $101.27

VWAP $100.27

Performance

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Investment Summary

📎 Investment Objective

The Vanguard California Tax-Exempt Bond ETF seeks to provide current income that is exempt from both federal and California personal income taxes, while preserving capital.

🎯 Investment Strategy

The ETF invests primarily in high-quality municipal bonds issued by the state of California and its local governments. The fund's portfolio is designed to track the performance of the Bloomberg Barclays CA Intermediate-Long Municipal Bond Index, which includes investment-grade municipal bonds with maturities ranging from 6 to 17 years.

✨ Key Features

Exposure to a diversified portfolio of California municipal bonds
Potential for tax-exempt income at both the federal and state level for California residents
Low expense ratio of 0.00%
Intermediate-term bond duration to balance income and interest rate risk

⚠️ Primary Risks

Interest rate risk: The fund's value may decline when interest rates rise, as bond prices and interest rates move in opposite directions
Credit risk: The possibility that a bond issuer will fail to make timely payments of interest or principal
Concentration risk: As a single-state municipal bond fund, the ETF is subject to greater risk from adverse economic, political, or regulatory changes in California
Liquidity risk: The potential difficulty in selling the fund's holdings at an advantageous time or price

👤 Best For

The Vanguard California Tax-Exempt Bond ETF may be suitable for California-based investors seeking tax-efficient income and relatively low-risk exposure to the municipal bond market. It may be particularly appealing for investors in high tax brackets who want to minimize their tax liability on bond income.