What's New In Investments, Funds? – Vanguard
The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.
Vanguard has launched the Vanguard Short-Term Tax-Exempt Bond ETF. The municipal bond index exchange-traded fund is run by the firm’s fixed income group.
The ETF is pitched at tax-sensitive investors with a short-term time horizon and low interest rate risk tolerance, the US firm said in a statement.
The entity mostly invests in short-term investment grade municipal bonds and will track the S&P® 0-7 Year National AMT-Free Municipal Bond Index. The ETF has an expense ratio of 0.07 per cent.
Steve McFee, who has been at Vanguard for 18 years, is the portfolio manager of this ETF.
“Vanguard Short-Term Tax-Exempt Bond ETF is built to optimize tax efficiency for investors seeking to allocate to the shorter end of the municipal bond market,” Sara Devereux, global head of Vanguard Fixed Income said.