Vanguard Group on Friday announced plans to launch two active municipal exchange-traded funds, Vanguard Core Tax-Exempt Bond ETF (VCRM) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM), by year-end.
Vanguard Fixed Income Group will manage the new funds.
The two funds “underscore the firm’s ongoing efforts to improve long-term investor outcomes by offering broadly diversified, low-cost municipal bond exposures with the potential to outperform the market over time,” said Dan Reyes, who heads Vanguard’s portfolio review department.
“The new ETFs combine Vanguard Fixed Income Group’s proven capabilities and talent with the convenience and flexibility of the ETF structure,” he said.
Vanguard Core Tax-Exempt Bond ETF and Vanguard Short Duration Tax-Exempt Bond ETF will offer diversified exposure to municipal bonds across sectors, states and credit quality with the potential to outperform their benchmarks over the long term, Vanguard said.
Vanguard Core Tax-Exempt Bond ETF will provide all-curve exposure mostly to high-quality, investment-grade municipal bonds that offer tax-exempt income.