Vanguard to Expand Offering Lineup with New ETF

Vanguard announced plans to introduce Vanguard Short-Term Tax-Exempt Bond ETF, a municipal bond index ETF that will be managed by Vanguard Fixed Income Group. Vanguard intends to launch the ETF in the first quarter of 2023.

"Vanguard provides a broad yet carefully constructed lineup of investment options tailored to the needs of our diverse investor base with the goal of giving them the best chance for investment success," said Daniel Reyes, head of Vanguard Portfolio Review Department. "The new Short-Term Tax-Exempt Bond ETF has been thoughtfully constructed for tax-sensitive investors with a short time horizon and low risk tolerance, in complement to our broad range of municipal bond strategies."

The ETF is intended for investors seeking to generate tax-exempt yield in their portfolios while minimizing interest rate sensitivity. It will predominantly invest in short-term investment grade municipal bonds and will track the S&P 0-7 Year AMT-Free Muni Bond index.

Stephen McFee, a portfolio manager in Vanguard Fixed Income Group, will manage the new fund. Mr. McFee joined Vanguard in 2005 and currently manages multiple municipal bond funds, including Vanguard Tax-Exempt Bond Index Fund.

Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to individual investors, institutions, and financial professionals.