Vanguard announced the launch of its Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and Vanguard New York Tax-Exempt Bond ETF (MUNY), two index municipal bond ETFs managed by Vanguard Fixed Income Group.
“Vanguard’s ongoing expansion of our bond ETF lineup empowers financial advisors and individual investors with low-cost, and highly diversified options to tap into the municipal bond market,” said Sara Devereux, global head of Vanguard Fixed Income Group. “The launch of VTEL and MUNY highlights our unwavering commitment to meeting the dynamic needs of investors who prefer the ETF wrapper for their bond investments. These ETFs bring together our unparalleled institutional-quality municipal bond expertise with some of the lowest costs in the industry, setting a new standard in the market.”
Vanguard New York Tax-Exempt Bond ETF is designed for tax-sensitive residents of New York. Vanguard Long-Term Tax-Exempt Bond ETF serves investors looking for exposure to longer duration municipal bonds, low fees, tax-efficiency and trading flexibility. Both ETFs have an expense ratio of 0.09% and are attractive for investors with a preference for passive management.
The addition of VTEL to Vanguard’s existing suite of national tax-exempt products further enables clients the ability to construct a portfolio with a comprehensive range of national municipal portfolio exposures using Vanguard ETF building blocks. The addition of MUNY to Vanguard’s suite of state specific municipal products helps to ensure that investors in two of the larger high tax states (CA – VTEC and NY – MUNY) can access municipal bonds from their state through a low-cost, high-quality Vanguard ETF. Vanguard’s municipal lineup, now 24 in total, consists of six index ETFs, two active ETFs, 12 active mutual funds, one index mutual fund, and three money market funds.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.