Vanguard Massachusetts Tax-Exempt Fund

Frequently Asked Questions About VMATX

What does VMATX invest in?

The primary aim of this fund is to generate a substantial amount of current income, free from both federal and Massachusetts personal income taxes. Exclusively available to Massachusetts residents, it principally allocates its investments to high-quality municipal bonds issued by state and local governments within Massachusetts, along with regional and public financing authorities. Under normal operating conditions, a minimum of 80% of the fund's holdings will consist of securities that provide income exempt from federal and Massachusetts state taxes. Although there are no specific limitations on the maturities of individual bonds, the portfolio's dollar-weighted average maturity typically ranges from 10 to 25 years. With an average duration of roughly 6 to 10 years, its net asset value is considerably more responsive to changes in interest rates compared to bond funds with shorter durations. This makes it a suitable option for Massachusetts-based investors who desire income free from federal and state taxes and are comfortable assuming the associated interest rate risk.

What is the expense ratio of VMATX?

Vanguard Massachusetts Tax-Exempt Fund (VMATX) charges an expense ratio of 0.09%. This is the annual fee deducted from fund assets to cover management and operations.

What is VMATX's dividend yield?

VMATX's trailing-twelve-month yield is 3.82%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VMATX?

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

What is the credit quality of VMATX?

VMATX'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 VMATX?

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