Vanguard Short-Term Tax-Exempt Bond ETF

VTES tracks a market value-weighted index of tax-exempt investment grade debt issued by US state and local governments or agencies. The fund includes muni bonds with an effective maturity below seven years.

Vanguard Tax-Exempt Bond Index ETF

Right now, the municipal bond space has a trifecta of tailwinds blowing in its favor. That said, the time is right for investors who have not yet considered adding munis to their existing bond portfolio.

A Trifecta of Tailwinds Are Benefiting Municipal Bonds

With an incoming presidential administration in 2025, municipal bonds are in play as infrastructure plans and other project initiatives could shape the muni debt space in the new year. On that note, Vanguard has a pair of muni bond-focused exchange-traded funds (ETFs) to consider.

Incoming Administration Puts Municipal Bonds in Play

In a changing bond market landscape, more wealth managers are recommending municipal bonds. The Federal Reserve is set to ease monetary policy and a new president will take office in 2025.

More Wealth Managers Recommending Muni Bonds

Vanguard Core Bond ETF

The forthcoming presidential election is certainly adding a healthy dose of intrigue into the municipal bond space. That said, Vanguard has a pair of muni ETF options that are worthy of consideration.

Election Year Adds Intrigue to Municipal Bonds

Municipal bonds are lauded for the tax-free income they can provide to fixed income investors. A closer look under the hood shows the tangible impact muni sales can provide to the communities that benefit from the funding.

Munis Offer Benefits Beyond Tax-Free Income

Fixed income investors who haven't already strategized about how they want to limit their tax burden in 2024 may want to consider municipal bonds. Municipal bonds are lauded in the bond markets for their relative stability versus other riskier debt holdings.

Reap the Tax Benefits of Municipal Bonds With These ETFs

Valuations for muni bonds are currently attractive, trading at levels not seen since the global financial crisis. And with munis posting 5.9% total returns last month, this asset class offers investors the opportunity to enjoy high rewards with low risk.

Target Low Risk, High Yield Muni Bonds With Vanguard's Muni ETFs

Valuations for municipal bonds are very attractive right now. And as yields remain strong, so do their fundamentals.

Consider Muni ETFs as Fundamentals Remain Strong

Tax-equivalent yields on municipal bonds are at higher levels than seen in years. Plus, thanks to pandemic-era stimulus funding, most muni balance sheets are flush with cash.

Consider This Tax-Efficient Way to Increase Your Fixed Income Allocation

Vanguard Short-Term Tax-Exempt Bond ETF offers investors a steady income stream and tax benefits. VTES tracks the performance of the S&P 0-7 Year National AMT-Free Municipal Bond Index, providing broad diversification. VTES is tax-efficient, with income generated from municipal bonds typically exempt from federal taxes.

VTES: A Good New Fund For Conservative Investors

Municipal bonds are on track to have a strong 2023. According to Steve McFee, a senior portfolio manager in Vanguard's Investment Management Group, 2022 was a challenging year.

Munis on Track to Having a Strong Year

In what's a positive sign for conservative, income-seeking investors, muni bonds are trending higher in 2023. That's supporting upside for a variety of exchange traded funds, including the Vanguard Tax-Exempt Bond ETF (VTEB).

Muni Bonds Coming Back Into Style

With the debt ceiling crisis having passed, advisors are rotating away from Treasuries. However, they're still looking to own high-quality bonds.

Munis Interest Grows Following Debt Ceiling Crisis

Recessionary pressures on the economy continue to mount, as the Fed tries to toe the line between raising interest rates to combat inflation and maintaining economic growth. In the meantime, muni bonds present investors with a prime fixed income option.

Muni Bonds: Recession Potential Warrants Second Look

Less than two months after being launched, the Vanguard Short-Term Tax-Exempt Bond ETF (VTES) is seeing significant inflows. Data from VettaFi show that the nascent Vanguard fund brought in $70.8 million in inflows in April, up a staggering 118% from the $25.

Vanguard's Short-Term Tax-Exempt Bond Fund VTES Brings in Investor Capital

Municipal bonds posted strong total returns in Q1 amid the collapse of Silicon Valley Bank and the subsequent banking crisis driving investors to seek quality, stable assets. In Q1, the Bloomberg Municipal Bond Index and the Bloomberg High Yield Municipal Bond Index returned 2.78% and 2.73%, respectively.

Investors Turn to Muni ETFs Amid Strong Returns

Vanguard Total Bond Market ETF

Vanguard Total International Bond ETF

U.S.-listed fixed income ETFs had net inflows of $52 billion in the first quarter of 2023, equal to 65% share of the industry's cash haul despite being just 20% of the assets.

Strong Demand for Vanguard Core Bond ETFs in 2023

With tax-equivalent yields for municipal bonds at levels not seen in over a decade, now may be a good time for investors to consider tax-efficient ways to add to their fixed income allocation. This is especially true for fixed income investors looking to focus on funds with shorter maturities.

Take Advantage of High Yields and Short Durations With VTES

Municipal bonds are extremely popular due to their tax advantages. While yields are low today, they are higher than what we saw in 2020 and 2021.

VTES: New Muni Fund From Vanguard Hits The Right Notes

It's been a big month for Vanguard thus far. Not only did the investment firm reach a major milestone by crossing the $2 trillion mark in U.S.-listed ETF assets under management earlier this month, but it also launched its second municipal bond ETF, the Vanguard Short-Term Tax-Exempt Bond ETF (VTES), on March 9.

Tom Lydon on Vanguard: “They Are Just Rock Solid”

Invesco National AMT-Free Municipal Bond ETF

The new fund focuses on short duration municipal bonds.

Vanguard Launches First ETF in Nearly 2 Years

Jeff Johnson, head of fixed income product at Vanguard, told VettaFi that his team was seeing a growing interest in muni bonds among investors but noticed that for the most part, they “really only had at their disposal actively managed muni bond funds, mostly in mutual funds.

Vanguard's Jackson and Johnson on Indexed Muni Demand

Vanguard today launched the Vanguard Short-Term Tax-Exempt Bond ETF (NYSE Arca: VTES). The new municipal bond index ETF is designed for tax-sensitive investors with a short-term time horizon and low interest rate risk tolerance.

Vanguard Launches Short-Term Tax-Exempt Bond ETF

While inflation appears to be slowing, it's still well above the level that the Federal Reserve would like it to be. So, it's likely that the U.S. central bank will continue to raise interest rates, which some believe will tip the U.S. economy into a recession.

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