What do you think of Vanguard Short-Term Tax-Exempt Bond ETF

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trirunner
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What do you think of Vanguard Short-Term Tax-Exempt Bond ETF

Post by trirunner »

What do you know of Vanguard Short-Term Tax-Exempt Bond ETF?

https://investor.vanguard.com/investmen ... ofile/vtes

Wonder why there is no yield listed on vanguard's website, must be too new.
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arcticpineapplecorp.
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Re: What do you think of Vanguard Short-Term Tax-Exempt Bond ETF

Post by arcticpineapplecorp. »

thanks for sharing. didn't know about this one. yeah it's pretty new isn't it. sec yield is usually the past 30 days and since the funds inception was 3/7/23 it hasn't had a 30 day track record.

i'd assume it will do what you want it to do if you:
1. want less risk (short term bonds are less risky than intermediate)
2. are ok with the potential of lower returns than an intermediate bond
3. need tax exempt income or are in a high tax bracket where munis make more sense

actually it says maturities of 0-7 years and it's for investors with time horizons of 4-10 years. That doesn't sound short term to me. Sounds more intermediate. But I guess intermediate bonds can have short, intermediate and long term bonds which this fund wouldn't have (nothing over 10 years). So I guess the effective duration is shorter, though I don't see the average duration so I don't know what the interest rate sensitivity of this is just yet.
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exodusing
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Re: What do you think of Vanguard Short-Term Tax-Exempt Bond ETF

Post by exodusing »

Vanguard had a Short-Term Tax-Exempt Bond fund, which they recently renamed Ultra Short-Term Tax-Exempt Bond, symbol VWSUX. Average maturity is about 1.5 years. I guess they renamed that to make room for the new ETF.

As noted, 0-7 years is hardly short.
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Mel Lindauer
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Re: What do you think of Vanguard Short-Term Tax-Exempt Bond ETF

Post by Mel Lindauer »

exodusing wrote: Thu Mar 23, 2023 8:40 pm Vanguard had a Short-Term Tax-Exempt Bond fund, which they recently renamed Ultra Short-Term Tax-Exempt Bond, symbol VWSUX. Average maturity is about 1.5 years. I guess they renamed that to make room for the new ETF.

As noted, 0-7 years is hardly short.
Agree that it doesn't sound short. And I'm still waiting to see what the 7-day yield is going to look like.
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