Vanguard, with roughly $2.9 trillion in 89 ETFs, is increasing its bond exchange-traded fund lineup with two new tax-exempt municipal bond ETFs, the asset administration large introduced Thursday.
Each the Vanguard Lengthy-Time period Tax-Exempt Bond ETF (VTEL) and the Vanguard New York Tax-Exempt Bond ETF (MUNY) are designed for traders trying to generate tax-exempt revenue by high-quality fastened revenue. Every ETF comes with a 0.09% expense ratio and could also be enticing to traders preferring passive administration, in response to a press launch issued by Vanguard.
“It is a actually nice time for investing in muni bonds,” Perryne Desai, senior fixed-income product supervisor at Vanguard, advised etf.com. “While you take a look at the lengthy finish of the curve, you’re getting nearly the identical yield from a 30-year municipal product as you’re in a Treasury product, and then you definately get the tax-equivalent profit.”
The introduction of those funds builds on years of launching related merchandise, beginning with the flagship Vanguard Tax-Exempt Bond ETF (VTEB) in 2015. The agency then debuted the Vanguard Brief-Time period Tax-Exempt Bond ETF (VTES) in 2023, adopted by the Vanguard Intermediate-Time period Tax-Exempt Bond ETF (VTEI) and Vanguard California Tax-Exempt Bond ETF (VTEC) in 2024. The 2 funds launched at this time “characterize the finality of that lineup construct in numerous methods,” Desai mentioned.
VTEL gives traders publicity to longer period municipal bonds, low charges, tax effectivity and buying and selling flexibility.
“We wished to create the period positioning for purchasers to allow them to select the place alongside the curve they’d like to take a position, slightly than having an all-curve product,” Desai added. “A lot of individuals are very completely satisfied and comfy in our VTEB product, however some like to interrupt up period into the varied buckets—brief, intermediate and lengthy—and we wished to ensure that that they had the instruments and the toolkit that they’d need to use.”
And just like the California-specific VTEC, MUNY offers traders in a big, high-tax state the flexibility to entry muni bonds from their state at a low price.
Vanguard’s suite of muni merchandise now consists of six index ETFs, two energetic ETFs, 12 energetic mutual funds, one index mutual fund and three cash market funds.
Vanguard, with roughly $2.9 trillion in 89 ETFs, is increasing its bond exchange-traded fund lineup with two new tax-exempt municipal bond ETFs, the asset administration large introduced Thursday.
Each the Vanguard Lengthy-Time period Tax-Exempt Bond ETF (VTEL) and the Vanguard New York Tax-Exempt Bond ETF (MUNY) are designed for traders trying to generate tax-exempt revenue by high-quality fastened revenue. Every ETF comes with a 0.09% expense ratio and could also be enticing to traders preferring passive administration, in response to a press launch issued by Vanguard.
“It is a actually nice time for investing in muni bonds,” Perryne Desai, senior fixed-income product supervisor at Vanguard, advised etf.com. “While you take a look at the lengthy finish of the curve, you’re getting nearly the identical yield from a 30-year municipal product as you’re in a Treasury product, and then you definately get the tax-equivalent profit.”
The introduction of those funds builds on years of launching related merchandise, beginning with the flagship Vanguard Tax-Exempt Bond ETF (VTEB) in 2015. The agency then debuted the Vanguard Brief-Time period Tax-Exempt Bond ETF (VTES) in 2023, adopted by the Vanguard Intermediate-Time period Tax-Exempt Bond ETF (VTEI) and Vanguard California Tax-Exempt Bond ETF (VTEC) in 2024. The 2 funds launched at this time “characterize the finality of that lineup construct in numerous methods,” Desai mentioned.
VTEL gives traders publicity to longer period municipal bonds, low charges, tax effectivity and buying and selling flexibility.
“We wished to create the period positioning for purchasers to allow them to select the place alongside the curve they’d like to take a position, slightly than having an all-curve product,” Desai added. “A lot of individuals are very completely satisfied and comfy in our VTEB product, however some like to interrupt up period into the varied buckets—brief, intermediate and lengthy—and we wished to ensure that that they had the instruments and the toolkit that they’d need to use.”
And just like the California-specific VTEC, MUNY offers traders in a big, high-tax state the flexibility to entry muni bonds from their state at a low price.
Vanguard’s suite of muni merchandise now consists of six index ETFs, two energetic ETFs, 12 energetic mutual funds, one index mutual fund and three cash market funds.
Vanguard, with roughly $2.9 trillion in 89 ETFs, is increasing its bond exchange-traded fund lineup with two new tax-exempt municipal bond ETFs, the asset administration large introduced Thursday.
Each the Vanguard Lengthy-Time period Tax-Exempt Bond ETF (VTEL) and the Vanguard New York Tax-Exempt Bond ETF (MUNY) are designed for traders trying to generate tax-exempt revenue by high-quality fastened revenue. Every ETF comes with a 0.09% expense ratio and could also be enticing to traders preferring passive administration, in response to a press launch issued by Vanguard.
“It is a actually nice time for investing in muni bonds,” Perryne Desai, senior fixed-income product supervisor at Vanguard, advised etf.com. “While you take a look at the lengthy finish of the curve, you’re getting nearly the identical yield from a 30-year municipal product as you’re in a Treasury product, and then you definately get the tax-equivalent profit.”
The introduction of those funds builds on years of launching related merchandise, beginning with the flagship Vanguard Tax-Exempt Bond ETF (VTEB) in 2015. The agency then debuted the Vanguard Brief-Time period Tax-Exempt Bond ETF (VTES) in 2023, adopted by the Vanguard Intermediate-Time period Tax-Exempt Bond ETF (VTEI) and Vanguard California Tax-Exempt Bond ETF (VTEC) in 2024. The 2 funds launched at this time “characterize the finality of that lineup construct in numerous methods,” Desai mentioned.
VTEL gives traders publicity to longer period municipal bonds, low charges, tax effectivity and buying and selling flexibility.
“We wished to create the period positioning for purchasers to allow them to select the place alongside the curve they’d like to take a position, slightly than having an all-curve product,” Desai added. “A lot of individuals are very completely satisfied and comfy in our VTEB product, however some like to interrupt up period into the varied buckets—brief, intermediate and lengthy—and we wished to ensure that that they had the instruments and the toolkit that they’d need to use.”
And just like the California-specific VTEC, MUNY offers traders in a big, high-tax state the flexibility to entry muni bonds from their state at a low price.
Vanguard’s suite of muni merchandise now consists of six index ETFs, two energetic ETFs, 12 energetic mutual funds, one index mutual fund and three cash market funds.
Vanguard, with roughly $2.9 trillion in 89 ETFs, is increasing its bond exchange-traded fund lineup with two new tax-exempt municipal bond ETFs, the asset administration large introduced Thursday.
Each the Vanguard Lengthy-Time period Tax-Exempt Bond ETF (VTEL) and the Vanguard New York Tax-Exempt Bond ETF (MUNY) are designed for traders trying to generate tax-exempt revenue by high-quality fastened revenue. Every ETF comes with a 0.09% expense ratio and could also be enticing to traders preferring passive administration, in response to a press launch issued by Vanguard.
“It is a actually nice time for investing in muni bonds,” Perryne Desai, senior fixed-income product supervisor at Vanguard, advised etf.com. “While you take a look at the lengthy finish of the curve, you’re getting nearly the identical yield from a 30-year municipal product as you’re in a Treasury product, and then you definately get the tax-equivalent profit.”
The introduction of those funds builds on years of launching related merchandise, beginning with the flagship Vanguard Tax-Exempt Bond ETF (VTEB) in 2015. The agency then debuted the Vanguard Brief-Time period Tax-Exempt Bond ETF (VTES) in 2023, adopted by the Vanguard Intermediate-Time period Tax-Exempt Bond ETF (VTEI) and Vanguard California Tax-Exempt Bond ETF (VTEC) in 2024. The 2 funds launched at this time “characterize the finality of that lineup construct in numerous methods,” Desai mentioned.
VTEL gives traders publicity to longer period municipal bonds, low charges, tax effectivity and buying and selling flexibility.
“We wished to create the period positioning for purchasers to allow them to select the place alongside the curve they’d like to take a position, slightly than having an all-curve product,” Desai added. “A lot of individuals are very completely satisfied and comfy in our VTEB product, however some like to interrupt up period into the varied buckets—brief, intermediate and lengthy—and we wished to ensure that that they had the instruments and the toolkit that they’d need to use.”
And just like the California-specific VTEC, MUNY offers traders in a big, high-tax state the flexibility to entry muni bonds from their state at a low price.
Vanguard’s suite of muni merchandise now consists of six index ETFs, two energetic ETFs, 12 energetic mutual funds, one index mutual fund and three cash market funds.
