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Vanguard Expands Bond ETF Lineup with Two New Index Municipal Bond ETFs

Strategic Insights

— 1 min read

Vanguard's ongoing expansion of its bond ETF lineup continues to empower financial advisors and individual investors with low-cost, highly diversified options to tap into the municipal bond market. The launch of Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and Vanguard New York Tax-Exempt Bond ETF (MUNY) highlights the company's commitment to meeting the dynamic needs of investors who prefer the ETF wrapper for their bond investments. These ETFs bring together Vanguard's institutional-quality municipal bond expertise with some of the lowest costs in the industry, setting a new standard in the market.

Key Takeaways:

  • Vanguard launched two new index municipal bond ETFs, Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and Vanguard New York Tax-Exempt Bond ETF (MUNY), managed by Vanguard Fixed Income Group.
  • The two ETFs have an expense ratio of 0.09% and are attractive for investors with a preference for passive management.
  • VTEL is designed for investors looking for exposure to longer duration municipal bonds, while MUNY is designed for tax-sensitive residents of New York.
  • The addition of VTEL and MUNY expands Vanguard's municipal ETF lineup to 24, consisting of six index ETFs, two active ETFs, 12 active mutual funds, one index mutual fund, and three money market funds.
  • Vanguard's municipal lineup has over $260 billion in assets, with the $35.9 billion Vanguard Tax-Exempt Bond ETF (VTEB) being its first municipal bond ETF.
  • Vanguard Fixed Income Group has been managing municipal bond portfolios for over 45 years and has a strong track record of delivering consistent, long-term performance.

Statistics:

  • Vanguard launched two new index municipal bond ETFs, VTEL and MUNY, which have an expense ratio of 0.09%.
  • Vanguard's municipal ETF lineup now consists of six index ETFs, two active ETFs, 12 active mutual funds, one index mutual fund, and three money market funds.
  • The two new ETFs bring Vanguard's municipal lineup to a total of 24 products, with over $260 billion in assets.
  • Vanguard's municipal bond lineup has a 45-year track record of consistent, long-term performance.

Sources:

  • PR Newswire, "Vanguard Launches Two Index Municipal Bond ETFs" (May 22, 2025)
  • Vanguard Press Release, "Vanguard Expands Bond ETF Lineup with Two New Index Municipal Bond ETFs" (May 22, 2025)

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