I want to buy a muni bond fund in my taxable account as part of my EF and was hoping to get some opinions on whether or not I should buy Vanguard's only (and less than one yr old) tax-exempt ETF, VTEB.
I have been looking at Vanguard's various tax-exempt funds and noticed that all short, intermediate, and long-term funds have an expense ratio of 0.20% for investor shares. I do not have enough for admiral shares, so I looked at their ETFs instead for a lower rate. The only muni ETF is VTEB, which is new as of last summer and has an ER of 0.12%. It is an investment grade muni bond fund that invests in all maturities and tracks the S&P National AMT-Free Municipal Bond Index.
Would you invest in this new fund for the ER savings, or invest in a fund equivalent that has been around longer? I am new to the investing game and wasn't sure if brand new funds are something to steer away from. I noticed the investor and admiral shares versions (which were created at the same time as the ETF) have a 0.25% purchase fee at the moment which is interesting.
I know either way I go I'll be in good hands, since a 0.20% ER is plenty low.
I was originally looking to buy either an intermediate or long-term muni, so duration does not play a role in my decision as this fund invests about 50% in long-term.