Author Topic: New Vanguard Muni Bond Index Fund and ETF  (Read 2219 times)


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New Vanguard Muni Bond Index Fund and ETF
« on: January 10, 2015, 07:11:41 AM »
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.)
« Last Edit: January 10, 2015, 07:31:16 AM by Fatmouse »


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Re: New Vanguard Muni Bond Index Fund and ETF
« Reply #1 on: January 10, 2015, 10:35:44 AM »
For very high earners, yes, it's going to be fantastic. Many Bogleheads are excited about it. Not so much here in MMM land.