Vanguard Core Tax-Exempt Bond E

Frequently Asked Questions About VCRM

What does VCRM invest in?

The Vanguard Core Tax-Exempt Bond ETF (VCRM) is an actively managed fund designed to achieve comprehensive returns through a combination of tax-free income and capital appreciation. This ETF primarily invests in municipal bonds, denominated in U.S. dollars, which are issued by state and local government entities across the United States. A key feature is that the interest income generated by these bonds is exempt from both federal income taxes and the Alternative Minimum Tax (AMT). While there are no specific maturity limits for individual bond holdings, the fund generally aims to maintain a dollar-weighted average maturity for its portfolio within an 8-to-20-year range. The majority of its holdings are dedicated to investment-grade municipal debt, specifically those rated A3 or higher by Moody's or a comparable rating service. The fund's exposure to speculative-grade, or "junk" bonds, is strictly capped at 20% of its total assets. Management of the fund is discretionary, guided by portfolio managers who integrate both macro-economic (top-down) insights and specific security (bottom-up) analyses. A core mandate ensures that, under typical market circumstances, a minimum of 80% of the portfolio's net assets remains invested in tax-exempt municipal obligations.

What is the expense ratio of VCRM?

Vanguard Core Tax-Exempt Bond E (VCRM) charges an expense ratio of 0.12%. This is the annual fee deducted from fund assets to cover management and operations.

What is VCRM's dividend yield?

VCRM's trailing-twelve-month yield is 3.73%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VCRM?

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

What is the credit quality of VCRM?

VCRM'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 VCRM?

Yield to maturity (YTM) is the total return you'd earn from VCRM if every bond in the portfolio is held to maturity at the current price. VCRM'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.