VANGUARD HIGH-YIELD TAX-EXEMPT FUND

VANGUARD MUNICIPAL BOND FUNDS · 2 share classes

Actively managed U.S. bond fund
One fund, 2 share classes:VWAHXVWALX
$17.31B NAV
3,369 positions · as of 2026-04-30 · filed 2026-06-26

Fund classification

Classified from what the fund holds · as of 2026 Q2

VANGUARD HIGH-YIELD TAX-EXEMPT FUND is an actively managed U.S. bond fund.

Asset class
Bonds
Region
United States
Management
Actively managed
Fund type
Open-end fund
Credit quality
Investment grade
Rate sensitivity
Long duration

Fund profile

As filed in the prospectus · 2026 Q1

Vanguard High-Yield Tax-Exempt Fund (the Fund) seeks to provide a high and sustainable level of current income that is exempt from federal personal income taxes.

Strategy · summarised

The fund actively selects investment-grade municipal bonds expected to deliver high current income exempt from federal tax, with flexibility to hold up to 20% in below-investment-grade bonds. The fund maintains a dollar-weighted average maturity between 10 and 25 years. Because security selection depends on the advisor's assessment of income generation and credit quality, performance will diverge from any benchmark.

Expenses
0.09% 0.17%across 2 share classes
Share classExpense ratio
VWAHX0.17%
VWALX0.09%

Portfolio turnover 37.00% · as of 2026 Q1

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

99.46%
of net assets
Bonds93.86%
Cash & short-term5.21%
Securitized0.39%
Derivatives0.00%

Derivatives are shown at market value, not notional exposure.

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 228 new196 exited

Largest new: Black Belt Energy Gas District ×3, City of Austin TX Airport System Revenue, California Community Choice Financing Authority ×2, Southeast Energy Authority A Cooperative District, State of Washington

Largest exited: The Public Building Authority of Blount County Tennessee, Mississippi Business Finance Corp, California Community Choice Financing Authority, County of Warren KY, New York City Municipal Water Finance Authority, City of Houston TX Airport System Revenue, Public Finance Authority, City of Grand Forks ND

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

Share class1-year3-year5-yearVolWorst fall
+6.89%+13.98%+6.28%4.74%-6.46%
+6.97%+14.26%+6.71%4.74%-6.45%

These classes hold the same portfolio, so the 0.43pp spread over 5 years is the cost difference between them — roughly 0.09pp a year — not a difference in what they own.

Cumulative return· May 2023 – Apr 2026

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30

Avg coupon
4.81%
Avg maturity
21.91 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

12%
floating
Fixed rate86.2%
Floating rate12.2%
Zero-coupon or unclassified1.5%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y0.1%
1-3y0.6%
3-5y1.3%
5-10y8.9%
10y+89.0%
Flagged holdings
Defaulted: 0.03% · $4.99M · 15 positions
In arrears: 0.02% · $2.60M · 6 positions
Paid in kind: none reported

These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2

Most of this fund’s sensitivity is to interest rates, with credit spreads carrying nearly as much.

Interest-rate duration
8.66 yr
approx. move per 100bp
Credit-spread duration
6.16 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -15.0%
of value
Interest rates58%
Credit spreads42%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+6.16
yrs total
Investment grade+5.92 yr
High yield+0.25 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate8.66 yr total
3 mo30 yr
3 mo0.02 yr0%
1 yr0.29 yr3%
5 yr1.40 yr16%
10 yr4.47 yr52%
30 yr2.48 yr29%
Credit spread6.16 yr total
3 mo30 yr
3 mo0.01 yr0%
1 yr0.18 yr3%
5 yr0.97 yr16%
10 yr3.20 yr52%
30 yr1.80 yr29%

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.02+0.01+0.00$14.8k$1.4k
1 yr+0.29+0.17+0.01$301.5k$16.3k
5 yr+1.40+0.93+0.04$1.61m$70.9k
10 yr+4.47+3.06+0.13$5.30m$228.0k
30 yr+2.48+1.74+0.06$3.01m$108.8k

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
Vanguard Cmt Funds-Vanguard Municipal Cash Management Fund5.21%$902.50M
Puerto Rico Sales Tax Financing Corp Sales Tax Revenue4.33% · due 2040-07-010.59%$102.20M
Public Finance Authority6.50% · due 2065-12-310.49%$84.48M
Public Finance Authority6.50% · due 2060-06-300.37%$63.29M
New York Transportation Development Corp5.50% · due 2060-06-300.32%$55.34M
Buckeye Tobacco Settlement Financing Authority5.00% · due 2055-06-010.31%$54.34M
Louisiana Public Facilities Authority5.75% · due 2064-09-010.31%$54.05M
County of Jefferson AL Sewer Revenue5.50% · due 2053-10-010.31%$53.39M
Chicago Board of Education6.25% · due 2050-12-010.30%$51.27M
The Lower Alabama Gas District5.00% · due 2033-12-010.28%$48.92M
Showing 10 of 3,369Sign in to see more

Top 10 positions are 8.49% of net assets, top 25 12.19%, across 871 issuers.

See more of this fund's book

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