From Yahoo Finance: 2025-05-22 13:30:00

Vanguard, managing $2.9 trillion in 89 ETFs, announced the launch of two new tax-exempt municipal bond ETFs. The Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and Vanguard New York Tax-Exempt Bond ETF (MUNY) have a 0.09% expense ratio and cater to investors seeking tax-exempt income through fixed income investments.

Perryne Desai of Vanguard noted the current attractiveness of muni bonds compared to Treasury products due to similar yields and tax benefits. These new funds add to Vanguard’s lineup of tax-exempt bond ETFs, following previous launches like VTEB in 2015.

VTEL offers exposure to longer duration municipal bonds, low fees, tax efficiency, and trading flexibility. Desai emphasized the importance of offering investors the ability to choose where to invest along the curve with various duration options.

MUNY, similar to VTEC for California, allows investors in high-tax states like New York to access municipal bonds at a low cost. Vanguard now offers a suite of muni products including index ETFs, active ETFs, mutual funds, and money market funds.

Read more: Vanguard Introduces Pair of New Muni Bond ETFs: VTEL, MUNY