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Saturday, October 11, 2025
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Vanguard Launches Short-Term Tax-Exempt Bond ETF

Vanguard today launched Vanguard Short-Term Tax-Exempt Bond ETF (Ticker: VTES). The new municipal bond index ETF is managed by Vanguard Fixed Income Group and is designed for tax-sensitive investors with a short-term time horizon and low interest rate risk tolerance.

“Vanguard Short-Term Tax-Exempt Bond ETF is built to optimize tax efficiency for investors seeking to allocate to the shorter end of the municipal bond market,” said Sara Devereux, global head of Vanguard Fixed Income Group. “The new ETF complements our broad fixed income lineup and provides clients with another avenue to tap our municipal bond team’s talent and capabilities.”

Vanguard Short-Term Tax-Exempt Bond ETF predominantly invests in short-term investment grade municipal bonds and will track the S&P® 0-7 Year National AMT-Free Municipal Bond Index. The ETF has an expense ratio of 0.07%, compared to 0.56% for the average short-term bond fund.1 Steve McFee, CFA® who has been at Vanguard for 18 years, is the portfolio manager of Vanguard Short-Term Tax-Exempt Bond ETF.

 

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