Key stats
About Vanguard Short-Term Tax Exempt Bond ETF
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Inception date
Mar 7, 2023
Structure
Open-Ended Fund
Replication method
Physical
Dividend treatment
Distributes
Distribution tax treatment
Ordinary income
Income tax type
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Primary advisor
The Vanguard Group, Inc.
Distributor
Vanguard Marketing Corp.
ISIN
US9219358705
VTES is passively managed to hold USD-denominated municipal bonds issued by state and local governments or agencies whose interest is federal tax-exempt and AMT-free. Eligible securities must have a rating of at least investment grade, a minimum par amount of $25 million, and a remaining term to maturity between one month and seven years. The fund seeks to maintain a dollar-weighted average maturity consistent with the index, which typically does not exceed four years. Short-term is defined quite differently for this fund as its underlying index reaches out to the intermediate bond space. The fund uses a sampling strategy to track the market value-weighted index, which rebalances monthly. As with all Vanguard ETFs, VTES only discloses its holdings monthly.
Related funds
Classification
What's in the fund
Exposure type
Municipal
Bonds, Cash & Other100.00%
Municipal99.05%
Mutual fund1.40%
Cash−0.44%
Top 10 holdings
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Frequently Asked Questions
An exchange-traded fund (ETF) is a collection of assets (stocks, bonds, commodities, etc.) that track an underlying index and can be bought on an exchange like individual stocks.
VTES assets under management is 1.34 B USD. AUM is an important metric as it reflects the fund's size and can serve as a gauge of how successful the fund is in attracting investors, which, in its turn, can influence decision-making.
Since ETFs work like an individual stock, they can be bought and sold on exchanges (e.g. NASDAQ, NYSE, EURONEXT). As it happens with stocks, you need to select a brokerage to access trading. Explore our list of available brokers to find the one to help execute your strategies. Don't forget to do your research before getting to trading. Explore ETFs metrics in our ETF screener to find a reliable opportunity.
VTES invests in bonds. See more details in our Analysis section.
VTES expense ratio is 0.06%. It's an important metric for helping traders understand the fund's operating costs relative to assets and how expensive it would be to hold the fund.
No, VTES isn't leveraged, meaning it doesn't use borrowings or financial derivatives to magnify the performance of the underlying assets or index it follows.
Yes, VTES pays dividends to its holders with the dividend yield of 2.82%.
VTES shares are issued by The Vanguard Group, Inc.
VTES follows the S&P 0-7 Year National AMT-Free Municipal Bond Index. ETFs usually track some benchmark seeking to replicate its performance and guide asset selection and objectives.
The fund started trading on Mar 7, 2023.
The fund's management style is passive, meaning it's aiming to replicate the performance of the underlying index by holding assets in the same proportions as the index. The goal is to match the index's returns.