- What does VWSTX invest in?
- The primary objective of this fund is to generate ongoing income that is exempt from federal personal income taxes, while striving for limited fluctuations in its share price. A substantial portion, specifically at least 75%, of the fund's holdings consists of high-quality municipal bonds. These are defined as securities within the top three credit-rating tiers from nationally recognized statistical rating organizations, or those deemed of comparable quality by the advisor if unrated. Up to 20% of the portfolio may be allocated to medium-grade quality bonds, as determined by either a rating agency or the advisor. The final 5% can be invested in securities with lower credit ratings or those assessed by the advisor as having similar quality, even without a formal rating. This fund offers the potential for a higher yield than a typical money market fund, primarily because it invests in longer-maturity securities. However, this increased yield potential is accompanied by a correspondingly greater level of risk. Changes in interest rates can affect the fund: declining rates may lead to reduced income for its short-term bond holdings, while rising rates could exert downward pressure on the fund's share price. This offering may appeal to investors who desire a modest, federally tax-exempt income stream and are comfortable with some degree of income and share price volatility.
- What is the expense ratio of VWSTX?
- Vanguard Ultra-Short-Term Tax-Exempt Fund Investor Shares (VWSTX) charges an expense ratio of 0.17%. This is the annual fee deducted from fund assets to cover management and operations.
- What is VWSTX's dividend yield?
- VWSTX's trailing-twelve-month yield is 3.03%, calculated from the sum of dividends over the past year divided by the current price.
- What is the duration of VWSTX?
- Effective duration measures VWSTX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VWSTX's current duration is published on the fund's factsheet on the issuer's website.
- What is the credit quality of VWSTX?
- VWSTX'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 VWSTX?
- Yield to maturity (YTM) is the total return you'd earn from VWSTX if every bond in the portfolio is held to maturity at the current price. VWSTX'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.
