- What does VWAHX invest in?
- This fund endeavors to deliver a significant and consistent stream of current income, free from federal personal income taxes. It predominantly allocates its assets (a minimum of 80%) to municipal bonds that are classified as investment-grade, either by recognized rating organizations or by the advisor's assessment. A smaller portion, up to 20% of its holdings, may be invested in bonds with a lower credit quality. Although there are no specific limits on the maturity of individual securities, the fund generally maintains a dollar-weighted average maturity ranging from 10 to 25 years. As a cost-effective municipal bond offering, it is particularly appealing to investors in higher tax brackets who are seeking federally tax-exempt earnings. The fund's potential for a higher yield, often linked to its exposure to lower credit quality bonds, means it carries an increased risk of price volatility due to the uncertain financial health of bond issuers. It is best suited for individuals who prioritize sustainable federally tax-exempt interest income, are willing to accept moderate risk to their principal, and wish to incorporate it as a supplementary component within an already diversified fixed income portfolio.
- What is the expense ratio of VWAHX?
- Vanguard High-Yield Tax-Exempt Fund Investor Shares (VWAHX) charges an expense ratio of 0.17%. This is the annual fee deducted from fund assets to cover management and operations.
- What is VWAHX's dividend yield?
- VWAHX's trailing-twelve-month yield is 4.15%, calculated from the sum of dividends over the past year divided by the current price.
- What is the duration of VWAHX?
- Effective duration measures VWAHX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VWAHX's current duration is published on the fund's factsheet on the issuer's website.
- What is the credit quality of VWAHX?
- VWAHX'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 VWAHX?
- Yield to maturity (YTM) is the total return you'd earn from VWAHX if every bond in the portfolio is held to maturity at the current price. VWAHX'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.
