VTES

Vanguard Short-Term Tax-Exempt Bond ETF

$101.43

+0.00%

Market closed. Last update: 11:39 PM ET

📎 Investment Objective

The Vanguard Short-Term Tax-Exempt Bond ETF seeks to provide current income that is exempt from federal personal income taxes, while preserving capital and maintaining a low portfolio duration.

Overview

ETF tracking Vanguard Short-Term Tax-Exempt Bond ETF

Category Fixed Income

Issuer Vanguard

Inception Date 2023-03-09

Market Cap $1.3B

Average Volume N/A

Dividend Yield 2.32%

52-Week Range $99.34 - $102.29

VWAP $101.45

Performance

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Investment Summary

📎 Investment Objective

The Vanguard Short-Term Tax-Exempt Bond ETF seeks to provide current income that is exempt from federal personal income taxes, while preserving capital and maintaining a low portfolio duration.

🎯 Investment Strategy

The ETF invests primarily in high-quality, short-term municipal bonds. It seeks to track the performance of the S&P National AMT-Free Municipal Bond Index, which includes investment-grade municipal bonds with maturities of 1 to 5 years.

✨ Key Features

Focuses on short-term, high-quality municipal bonds to provide tax-exempt income
Seeks to maintain a low portfolio duration to reduce interest rate risk
Passively managed to track the S&P National AMT-Free Municipal Bond Index
Expense ratio of 0.00% makes it a low-cost option for tax-exempt fixed income exposure

⚠️ Primary Risks

Interest rate risk: The value of the fund's holdings may decline if interest rates rise
Credit risk: The fund is exposed to the risk of default by the municipal bond issuers
Tax risk: Changes in tax laws could affect the tax-exempt status of the fund's income
Liquidity risk: The fund may have difficulty selling certain municipal bonds

👤 Best For

This ETF may be suitable for investors seeking tax-exempt income and low interest rate risk, such as those in higher tax brackets or with a shorter investment horizon. It can be used as a core holding or to complement a broader fixed income portfolio.