This week, Vanguard announced that it will offer a new municipal bond index fund and ETF. It will benchmark the S&P National AMT-Free Municipal Bond Index. It's supposed to be available by June 2015.
The ETF will have an expense ratio of 0.12. The mutual fund has a front-end 0.5 purchase fee and an expense ratio of 0.20 for regular shares and 0.12 for admiral class shares.
Am I concluding correctly that the ETF is an MMM dream, for the bond portion of a taxable portfolio (for high income MMM-ers)?
I recently liquidated a hodge podge of actively managed mutual funds, which I purchased without a clue about good investment strategies. I have a large (for me) cash position in a taxable brokerage account that I was just about to re-invest in Vanguard funds, three-fund portfolio style. Now I may keep my allocation for bonds in cash until this ETF is available for purchase. Does this sound like a good plan?
(Edited to correct details re: expense rations and purchase fee.)
