Vanguard Pennsylvania Long-Term Tax-Exempt Fund Investor Shares

Frequently Asked Questions About VPAIX

What does VPAIX invest in?

This fund aims to generate income that is exempt from both federal and Pennsylvania personal income taxes, making it exclusively suitable for residents of Pennsylvania. Its investment strategy focuses primarily on high-quality municipal bonds issued by Pennsylvania state and local governments, alongside regional government and public financing authorities. Typically, at least 80% of the fund's assets will be allocated to securities whose income is free from both federal and Pennsylvania state taxes. Although there are no specific limitations on the maturity of individual securities held, the fund's dollar-weighted average maturity is expected to range from 10 to 25 years. With an average duration of approximately 6–10 years, the fund's share price is considerably more reactive to fluctuations in interest rates compared to funds with shorter-term bond holdings. Therefore, it may be an appropriate choice for Pennsylvania investors who desire tax-exempt interest income and are prepared to accept the associated interest rate volatility.

What is the expense ratio of VPAIX?

Vanguard Pennsylvania Long-Term Tax-Exempt Fund Investor Shares (VPAIX) charges an expense ratio of 0.14%. This is the annual fee deducted from fund assets to cover management and operations.

What is VPAIX's dividend yield?

VPAIX's trailing-twelve-month yield is 3.86%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VPAIX?

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

What is the credit quality of VPAIX?

VPAIX'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 VPAIX?

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