- What does VWLTX invest in?
- The fund's main objective is to provide a high and steady flow of current income that is not subject to federal personal income taxes. Although there are no specific limits on the maturity of individual securities within the portfolio, it is structured to maintain a value-weighted average maturity typically ranging from 10 to 25 years. A substantial portion, at least 75%, of the fund's investments are in municipal bonds that are highly rated—meaning they fall into the top three credit-rating tiers from nationally recognized agencies, or are judged to be of equivalent quality by the fund's advisor if unrated. Up to 20% of the assets may be allocated to medium-grade bonds, as determined by a rating agency or the advisor. The final 5% can be invested in securities with lower credit ratings or those assessed as comparable by the advisor. This fund is ideal for investors who are looking for income that is exempt from federal taxes and who are comfortable with potential interest rate risks. It's important to note that the Vanguard Long-Term Tax-Exempt Fund is a standalone product, separate from the Vanguard Long-Term Tax-Exempt Bond ETF (VTEL). Disparities in their size, portfolio management approaches (e.g., active versus index tracking), specific investment methodologies, and the mix of their underlying holdings mean these two offerings are anticipated to deliver different investment returns.
- What is the expense ratio of VWLTX?
- Vanguard Long-Term Tax-Exempt Fund Investor Shares (VWLTX) charges an expense ratio of 0.17%. This is the annual fee deducted from fund assets to cover management and operations.
- What is VWLTX's dividend yield?
- VWLTX's trailing-twelve-month yield is 3.79%, calculated from the sum of dividends over the past year divided by the current price.
- What is the duration of VWLTX?
- Effective duration measures VWLTX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VWLTX's current duration is published on the fund's factsheet on the issuer's website.
- What is the credit quality of VWLTX?
- VWLTX'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 VWLTX?
- Yield to maturity (YTM) is the total return you'd earn from VWLTX if every bond in the portfolio is held to maturity at the current price. VWLTX'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.
