Vanguard California Long-Term Tax-Exempt Fund Admiral Shares

Frequently Asked Questions About VCLAX

What does VCLAX invest in?

This fund's primary objective is to generate current income free from both federal and California personal income taxes. It is exclusively tailored for individuals residing in California. The investment strategy focuses predominantly on high-grade municipal debt securities issued by various California state and local governmental bodies, alongside regional government and public financing authorities. Under typical conditions, a minimum of 80% of the fund's holdings will consist of assets that produce income free from federal and California state taxes. Although there are no specific restrictions on the maturities of individual securities, its dollar-weighted average maturity usually falls within the 10-to-25-year range. Possessing an average duration of roughly 6 to 10 years, the fund's net asset value is considerably more susceptible to shifts in interest rates compared to funds invested in shorter-term bonds. This offering may be a suitable consideration for California-based investors prioritizing tax-advantaged income at the federal and state levels, provided they are comfortable with the associated interest rate volatility.

What is the expense ratio of VCLAX?

Vanguard California Long-Term Tax-Exempt Fund Admiral Shares (VCLAX) charges an expense ratio of 0.09%. This is the annual fee deducted from fund assets to cover management and operations.

What is VCLAX's dividend yield?

VCLAX's trailing-twelve-month yield is 3.79%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VCLAX?

Effective duration measures VCLAX's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VCLAX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of VCLAX?

VCLAX's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of VCLAX?

Yield to maturity (YTM) is the total return you'd earn from VCLAX if every bond in the portfolio is held to maturity at the current price. VCLAX's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.