Vanguard Expands Tax-Exempt Bond ETF Lineup with the Launch of Two Municipal Bond ETFs

VALLEY FORGE, Pa., May 22, 2025 /PRNewswire/ -- Vanguard today launched Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and Vanguard New York Tax-Exempt Bond ETF (MUNY), two index municipal bond ETFs managed by Vanguard Fixed Income Group.

"Vanguard's ongoing expansion of our bond ETF lineup empowers financial advisors and individual investors with low-cost, and highly diversified options to tap into the municipal bond market," said Sara Devereux, Global Head of Vanguard Fixed Income Group. "The launch of VTEL and MUNY highlights our unwavering commitment to meeting the dynamic needs of investors who prefer the ETF wrapper for their bond investments. These ETFs bring together our unparalleled institutional-quality municipal bond expertise with some of the lowest costs in the industry, setting a new standard in the market."

Vanguard New York Tax-Exempt Bond ETF is designed for tax-sensitive residents of New York. Vanguard Long-Term Tax-Exempt Bond ETF serves investors looking for exposure to longer duration municipal bonds, low fees, tax-efficiency and trading flexibility. Both ETFs have an expense ratio of 0.09% and are attractive for investors with a preference for passive management.

The addition of VTEL to Vanguard's existing suite of national tax-exempt products further enables clients the ability to construct a portfolio with a comprehensive range of national municipal portfolio exposures using Vanguard ETF building blocks. The addition of MUNY to Vanguard's suite of state specific municipal products helps to ensure that investors in two of the larger high tax states (CA – VTEC and NY – MUNY) can access municipal bonds from their state through a low-cost, high-quality Vanguard ETF. Vanguard's municipal lineup, now 24 in total, consists of six index ETFs, two active ETFs, 12 active mutual funds, one index mutual fund, and three money market funds.

Vanguard Fixed Income Group

For more than four decades, Vanguard Fixed Income Group has distinguished itself with deep investment capabilities, disciplined security selection processes, and rigorous risk management techniques, resulting in consistent, long-term performance. Vanguard is a pioneer in bond indexing and has successfully delivered tight benchmark tracking on a range of indexed fixed income strategies in both taxable and tax-exempt markets. Vanguard's Fixed Income Group has been managing municipal bond portfolios for more than 45 years. The group's $260 billion municipal bond lineup includes the $35.9 billion Vanguard Tax-Exempt Bond ETF (VTEB), Vanguard's first municipal bond ETF, Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and Vanguard California Tax-Exempt Bond ETF (VTEC).

About Vanguard

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. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.

For more information about Vanguard funds and Vanguard ETFs, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

All investing is subject to risk, including the possible loss of the money you invest. 

Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. Investments in bonds are subject to interest rate, credit, and inflation risk.

Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax.

© 2025 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor.

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