Fund info

Vanguard High-Yield Tax-Exempt Fund Investor Shares is a mutual fund specializing in long-term municipal bonds, aiming to provide investors with a high and sustainable level of current income that is exempt from federal personal income tax. The fund predominantly invests at least 80% of its assets in investment-grade municipal bonds determined by recognized rating agencies, while up to 20% can be allocated to bonds of lower quality. It maintains a robust level of diversification, with more than 3,000 holdings and assets totaling around $15.6 billion. Guided by a seasoned management team, the fund employs a disciplined, risk-conscious investment process, balancing exposure to higher-yielding, lower-rated securities with overall portfolio quality. The fund’s moderate expense ratio and focus on credit assessment make it a competitive option in the municipal bond market. With a yield near 4% and monthly income distributions, the fund plays a significant role for investors seeking federally tax-exempt income, making it particularly appealing to those in higher tax brackets. Since inception in 1978, the fund has established itself as a prominent vehicle for long-term tax-advantaged income generation within the national muni category.