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Time to Buy Vanguard Short-Term Tax-Exempted Fund (VWSTX)

Zacks Equity Research

Vanguard Short-Term Tax-Exempted Fund (VWSTX) seeks income exempt from federal income tax. VWSTX holds high quality, tax-exempt, municipal securities with a combined average maturity of one to two years, which serves to keep share-price fluctuations very low. The fund manager works to keep VWSTX broadly diversified while adding value by adjusting its average maturity (within the specified range) depending upon the interest-rate outlook and other factors. The manager may also attempt to add value by emphasizing specific issues and sectors of the tax-exempt market that appear to represent good value based upon past yield relationships. The relative attractiveness of different market sectors varies from time to time.

This Muni Bond product has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the 3, 5 year benchmarks; 3 year 0.5% and 5 year 0.6%. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.

This Zacks Rank #1 (Strong Buy) was incepted in September 1977 and is managed by Vanguard Group. VWSTX carries an expense ratio of 0.19% and requires a minimal initial investment of $3,000.

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