Vanguard Limited-Term Tax-Exempt Fund Investor Shares

Frequently Asked Questions About VMLTX

What does VMLTX invest in?

This economical municipal bond fund is designed to provide revenue that is free from federal income taxes, making it particularly appealing to individuals in higher tax brackets. It primarily holds high-grade municipal debt with shorter maturities, maintaining an average duration, or interest rate sensitivity, of approximately two years, which is slightly longer than its Short-Term Tax-Exempt counterpart. A key risk involves interest rate movements; both increases and decreases in rates could lead to a decline in bond valuations or a future reduction in the fund's income. This fund is ideal for investors seeking a moderate level of federally tax-exempt earnings who are comfortable with some variability in their income stream and share price.

What is the expense ratio of VMLTX?

Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLTX) charges an expense ratio of 0.17%. This is the annual fee deducted from fund assets to cover management and operations.

What is VMLTX's dividend yield?

VMLTX's trailing-twelve-month yield is 3.17%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VMLTX?

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

What is the credit quality of VMLTX?

VMLTX'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 VMLTX?

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