Vanguard Limited-Term Tax-Exempt Fund Admiral Shares

Frequently Asked Questions About VMLUX

What does VMLUX invest in?

This cost-efficient municipal bond fund is designed to deliver income that is not subject to federal taxation, often making it an attractive option for investors in higher income tax brackets. It primarily invests in high-quality municipal bonds with relatively short maturities, exhibiting an average interest rate sensitivity (duration) of approximately two years, which is somewhat longer than its Short-Term Tax-Exempt Fund counterpart. A key risk involves interest rate fluctuations; both increases and decreases in rates could lead to a reduction in bond prices or eventually diminish the income the fund provides. Individuals desiring a modest, federally tax-exempt income stream who are also prepared to accept some variability in their income and the fund's share price may find this investment suitable.

What is the expense ratio of VMLUX?

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

What is VMLUX's dividend yield?

VMLUX's trailing-twelve-month yield is 3.24%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VMLUX?

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

What is the credit quality of VMLUX?

VMLUX'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 VMLUX?

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