Valley Forge, Pa.-based Vanguard announced today the launch of two new municipal bond ETFs.
The Vanguard Intermediate-Term Tax-Exempt Bond ETF, ticker VTEI, and the Vanguard California Tax-Exempt Bond ETF, ticker VTEC, will be managed by Vanguard’s Fixed Income Group.
VTEI offers tax sensitivity and an intermediate-term time horizon in a passively managed ETF, according to Vanguard’s announcement, providing tax-free yield for an estimated expense ratio of 0.08% against a category average expense ratio of 0.37%.
Similarly, VTEC offers an intermediate time horizon and passive management, Vanguard said, but it is specifically designed to offer tax-exempt yield at both the federal and the state level for California residents at an estimated expense ratio of 0.08% versus a category average expense ratio of 0.28%.
The new pair of ETFs joins Vanguard’s $229 billion municipal bond product lineup, which includes the $29.3 billion Vanguard Tax-Exempt Bond ETF (VTEB).
“Vanguard continues to build its lineup of funds and ETFs designed to meet investors’ distinct objectives, and specific risk-reward preferences,” said Dan Reyes, global head of the Vanguard Portfolio Review Department, in a prepared statement. “These new strategies will offer tax-sensitive investors low-cost exposure to important segments of the municipal bond market through the ETF product structure.”