VTEB Profile
The
Tax-Exempt Bond Vanguard ETF seeks to provide investors with exposure
to the U.S. municipal bond market while seeking to provide income that
is exempt from federal income tax. The fund is managed by Vanguard, a
leading global investment management firm.
As of September
2021, the VTEB ETF had a net asset value of approximately $34 billion
and held a diversified portfolio of investment-grade municipal bonds
issued by state and local governments across the U.S. Municipal bonds
are issued by state and local governments to fund public projects such
as schools, hospitals, and infrastructure, and are generally exempt
from federal income tax.
Investing in municipal bonds may offer
investors the potential for tax-free income, as well as the potential
for relatively low volatility compared to other types of fixed-income
securities. However, investing in municipal bonds may also expose
investors to various risks, including interest rate risk, credit risk,
and liquidity risk.
The expense ratio for the VTEB ETF is
0.06%, which is relatively low compared to some other municipal bond
ETFs. This may make the VTEB ETF an attractive option for investors
seeking exposure to the municipal bond market while minimizing costs.
Overall, the Tax-Exempt Bond Vanguard ETF may be a suitable
investment for investors seeking exposure to the U.S. municipal bond
market with the potential for tax-free income. However, as with any
investment, it is important to conduct your own research and consider
your investment goals and risk tolerance before investing in the fund.
Investors should also keep in mind the potential risks associated with
investing in municipal bonds, including interest rate risk, credit
risk, and liqu
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