Investment objective & strategy
As of Feb. 27, 2026 · prospectusObjective. Vanguard Ultra-Short-Term Tax-Exempt Fund (the Fund) seeks to provide current income that is exempt from federal personal income taxes, with limited price volatility.
Strategy. The Fund employs an active management approach, investing mainly in state and local municipal bonds. As a matter of fundamental policy, under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities whose income is exempt from federal income tax. The Fund expects to maintain a dollar-weighted average maturity of 1 to 2 years, but has no limitations on the maturities of individual securities. The Fund typically invests at least 75% of its assets in municipal bonds in one of the top three credit rating categories as determined by a nationally recognized statistical rating organization (e.g., Aaa, Aa, or A by Moodys) or, if unrated, determined to … The Fund employs an active management approach, investing mainly in state and local municipal bonds. As a matter of fundamental policy, under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities whose income is exempt from federal income tax. The Fund expects to maintain a dollar-weighted average maturity of 1 to 2 years, but has no limitations on the maturities of individual securities. The Fund typically invests at least 75% of its assets in municipal bonds in one of the top three credit rating categories as determined by a nationally recognized statistical rating organization (e.g., Aaa, Aa, or A by Moodys) or, if unrated, determined to be of comparable quality by the Funds advisor. The Fund may invest up to 20% of its assets in medium-quality municipal bonds (e.g., Baa by Moodys) and 5% of its assets in securities with lower credit ratings, also as determined by a nationally recognized statistical rating organization or, if unrated, determined to be of comparable quality by the Funds advisor.
Top holdings
As of Jan. 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Vanguard Municipal Cash Management Fund | — | $387.24M | 2.20% |
| NUVEEN AMT-FREE MUNI | — | $219.00M | 1.25% |
| MUNIBOND | BBEUTL | $192.12M | 1.09% |
| Public Energy Authority of Kentucky, Gas Supply Revenue Bonds, Refunding Series 2025A | KYSPWR | $157.85M | 0.90% |
| MUNIBOND | — | $139.13M | 0.79% |
| CA STWD CMNTYS DEV-A | — | $131.85M | 0.75% |
| MAIN STR NAT GA 4% 3/1/2050 | MAIUTL | $131.35M | 0.75% |
| California (State of) Community Choice Financing Authority (Green Bonds), Series 2023 D, RB | CCEDEV | $112.34M | 0.64% |
| NUVEEN AMT-FREE QUALITY MUNICIPAL INCOME FUND | — | $110.74M | 0.63% |
| KY PUB ENERGY AUTH-A | — | $110.01M | 0.63% |
Portfolio moves
Oct 31, 2025 → Jan 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| VANGUARD LIMITED-TERM TAX-EXEMPT FUND · VMLTX, VMLUX | 36% | 0.09% |
| VANGUARD SHORT DURATION TAX-EXEMPT BOND ETF · VSDM | 21% | 0.12% |
| VANGUARD CORE TAX-EXEMPT BOND ETF · VCRM | 10% | 0.12% |
Advisers
| Firm | Role |
|---|---|
| The Vanguard Group, Inc. | Adviser |
Footnotes
- Expense ratio as of February 27, 2026, from the fund's prospectus.
- Net assets and holdings count as of January 31, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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