- What does VWALX invest in?
- This fund's primary objective is to generate a significant and consistent flow of income that is entirely free from federal personal income. It commits at least 80% of its holdings to high-quality municipal bonds, which are either rated as investment-grade by established organizations or considered of similar caliber by the advisor. Up to 20% of the fund's assets may be allocated to municipal bonds with lower credit quality, as assessed by a rating agency or the advisor. While individual security maturities are not limited, the portfolio is expected to maintain an average dollar-weighted maturity between 10 and 25 years. This cost-effective municipal bond offering is especially appealing to individuals in higher tax brackets seeking substantial federally tax-exempt earnings. The inclusion of lower-rated bonds, while potentially boosting the yield, also increases the fund's susceptibility to price volatility due to less certain prospects for the bond issuers. Consequently, it is an appropriate choice for investors who prioritize sustainable federally tax-free interest income, can tolerate moderate risk to their principal, and wish to complement an already diversified fixed-income portfolio.
- What is the expense ratio of VWALX?
- Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX) charges an expense ratio of 0.09%. This is the annual fee deducted from fund assets to cover management and operations.
- What is VWALX's dividend yield?
- VWALX's trailing-twelve-month yield is 4.23%, calculated from the sum of dividends over the past year divided by the current price.
- What is the duration of VWALX?
- Effective duration measures VWALX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VWALX's current duration is published on the fund's factsheet on the issuer's website.
- What is the credit quality of VWALX?
- VWALX'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 VWALX?
- Yield to maturity (YTM) is the total return you'd earn from VWALX if every bond in the portfolio is held to maturity at the current price. VWALX'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.
