Avant-gardeWith approximately 2.9 billions of dollars in 89 ETF, expands its range of funds negotiated in exchange for bonds with two new ETF of municipal tax bonds, the asset management giant announcement THURSDAY.
Both Vanguard ETF of long -term exempt bonds (vtel) and the Vanguard New York ETF Exonted tax bonds (Mony) are designed for investors who seek to generate tax exempt from tax thanks to a high quality fixed income. Each ETF is delivered with a 0.09% spending ratio and can be attractive for investors who prefer passive management, according to a press release published by Vanguard.
“It’s a great time to invest in Muni Obligs,” said Perryne Desai, Product Manager with senior fixed income at Vanguard, at Etf.com. “When you look at the long end of the curve, you get almost the same yield of a 30 -year -old municipal product that you are in a cash product, then you get the equivalent tax advantage.”
The introduction of these funds is based on years of launching similar products, starting with the lighthouse Vanguard ETF Tax exempt bonds (VTEB) in 2015. The company then made its debut Vanguard ETF of short -term bonds exempt from tax (VTES) in 2023, followed by Vanguard ETF of obligations exempt intermediate’s term (VTEI) And Vanguard California Extr-Exmpt Bond Etf (VTEC) In 2024. The two funds introduced today “represent the purpose of this programming in many ways,” said Desai.
Vtel offers investors an exposure to longer -time municipal obligations, low costs, tax efficiency and commercial flexibility.
“We wanted to create the positioning of the duration for customers so that they can choose where along the curve they want to invest, rather than having a product entirely in curve,” added Desai. “Many people are very happy and comfortable in our VTEB product, but some like to break the duration in the different buckets – shorts, intermediate and long – and we wanted to make sure they had the tools and the toolbox they would like to use.”
And as the VTEC specific to California, Muny gives investors in a large state of high tax the possibility of accessing the obligations provided from their low -cost state.
The continuation of products provided with Vanguard now includes six ETF index, two active ETFs, 12 common investment funds, a common index investment fund and three monetary market funds.
