Vanguard, the Valley Forge PA based firm and one of the world’s largest asset managers with more than $7T of investor capital under its belt has bolstered its exchange traded fund lineup with the addition of the Vanguard Short-Term Tax-Exempt Bond ETF ( VTES ).
VTES aims to help market participants generate tax-exempt yield in their portfolios while curtailing interest rate sensitivity. The fund will mainly takes positions in short-term investment grade municipal bonds and intends to track the S&P 0-7 Year AMT-Free Muni Bond Index.
Furthermore, VTES comes to market attached with an expense ratio of 0.07%, which is much lower compared to the 0.54% expense ratio for the average short-term bond fund.
VTES will be the latest addition to Vanguards ETF lineup and will trade alongside other fixed income funds that the issuer has such as the Vanguard Total Bond Market ETF ( NASDAQ: BND ), Vanguard Total International Bond ETF ( NASDAQ: BNDX ), Vanguard Short-Term Corporate Bond ETF ( NASDAQ: VCSH ), and Vanguard Tax-Exempt Bond ETF ( NYSEARCA: VTEB ).
Regarding the launch, Daniel Reyes, head of Vanguard Portfolio Review Department stated: "The new Short-Term Tax-Exempt Bond ETF has been thoughtfully constructed for tax-sensitive investors with a short time horizon and low risk tolerance, in complement to our broad range of municipal bond strategies."
Check out additional insight and information on VTES here.
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Vanguard bolsters ETF lineup with a new Short-Term Tax-Exempt Bond