VANGUARD ULTRA-SHORT-TERM TAX-EXEMPT FUND
VANGUARD MUNICIPAL BOND FUNDS · 2 share classes
Fund classification
Classified from what the fund holds · as of 2026 Q2
VANGUARD ULTRA-SHORT-TERM 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
- Short duration
Fund profile
As filed in the prospectus · 2026 Q1
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.
The fund actively manages a portfolio of state and local municipal bonds with maturities typically between 1 and 2 years, targeting tax-exempt income with minimal price swings. At least 75% of assets are held in top-rated municipal bonds (Aaa, Aa, or A), with up to 20% in medium-quality bonds and 5% in lower-rated securities. Because security selection depends on the advisor's credit assessments, fund returns will diverge from any municipal bond benchmark.
| Share class | Expense ratio |
|---|---|
| VWSTX | 0.17% |
| VWSUX | 0.09% |
Portfolio turnover 74.00% · as of 2026 Q1
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 98.30% |
| Cash & short-term | 1.86% |
| Securitized | 0.00% |
| Derivatives | -0.00% |
The outer band is exposure held short — written against the portfolio rather than part of it, which is why it sits outside the ring and why the two are never netted into one figure.
Derivatives are shown at market value, not notional exposure.
Latest quarter
What changed since the fund's previous filing
Largest new: California Community Choice Financing Authority, Public Finance Authority, Tender Option Bond Trust Receipts/Certificates, Minnesota Agricultural & Economic Development Board ×2, New York City Transitional Finance Authority Future Tax Secured Revenue, 2026 Loan Holding-1, Health & Educational Facilities Authority of the State of Missouri
Largest exited: Kentucky Public Energy Authority, Harris County Cultural Education Facilities Finance Corp, Wisconsin Health & Educational Facilities Authority, Illinois Finance Authority, Pennsylvania Economic Development Financing Authority, Rib Floater Trust Various States, Metropolitan Government of Nashville & Davidson County TN, Triborough Bridge & Tunnel Authority
Return profile
Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026
| Share class | 1-year | 3-year | 5-year | Vol | Worst fall |
|---|---|---|---|---|---|
| +3.88% | +11.20% | +11.37% | 0.88% | -0.39% | |
| +3.96% | +11.47% | +11.81% | 0.88% | -0.38% |
These classes hold the same portfolio, so the 0.45pp spread over 5 years is the cost difference between them — roughly 0.09pp a year — not a difference in what they own.
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Floating rate | 58.5% |
| Fixed rate | 41.0% |
| Zero-coupon or unclassified | 0.5% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 16.9% |
| 1-3y | 14.8% |
| 3-5y | 12.6% |
| 5-10y | 7.7% |
| 10y+ | 48.0% |
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
More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.
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.
| Credit spreads | 51% |
| Interest rates | 49% |
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.
Share of the fund's spread duration carried by each credit tier.
| Investment grade | +2.98 yr |
| High yield | +0.02 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.06 yr | 2% |
| 1 yr | 0.43 yr | 15% |
| 5 yr | 0.71 yr | 24% |
| 10 yr | 1.02 yr | 35% |
| 30 yr | 0.71 yr | 24% |
| 3 mo | 0.05 yr | 2% |
| 1 yr | 0.39 yr | 13% |
| 5 yr | 0.62 yr | 21% |
| 10 yr | 1.12 yr | 37% |
| 30 yr | 0.83 yr | 28% |
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
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/bp |
|---|---|---|---|---|---|
| 3 mo | +0.06 | +0.05 | +0.00 | $80.1k | $1.8k |
| 1 yr | +0.43 | +0.38 | +0.01 | $671.3k | $15.0k |
| 5 yr | +0.71 | +0.61 | +0.01 | $1.09m | $14.7k |
| 10 yr | +1.02 | +1.11 | +0.00 | $1.98m | $4.1k |
| 30 yr | +0.71 | +0.83 | +0.00 | $1.48m | $788 |
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
| Ticker | Issuer | %NAV | Value | Shares |
|---|---|---|---|---|
| — | Vanguard Cmt Funds-Vanguard Municipal Cash Management Fund | 1.86% | $329.84M | — |
| — | Nuveen AMT-Free Quality Municipal Income Fund3.73% floating · due 2040-06-01 | 1.23% | $219.00M | — |
| — | Black Belt Energy Gas District4.00% floating · due 2052-10-01 | 1.14% | $203.01M | — |
| — | Kentucky Public Energy Authority5.25% floating · due 2055-06-01 | 1.03% | $182.47M | — |
| — | California Community Choice Financing Authority5.50% floating · due 2054-05-01 | 0.92% | $163.93M | — |
| — | Black Belt Energy Gas District4.00% floating · due 2052-10-01 | 0.78% | $138.30M | — |
| — | Main Street Natural Gas Inc4.00% floating · due 2050-03-01 | 0.74% | $131.43M | — |
| — | California Statewide Communities Development Authority5.00% · due 2028-10-01 | 0.70% | $124.25M | — |
| — | Nuveen AMT-Free Quality Municipal Income Fund3.54% floating · due 2029-03-01 | 0.62% | $110.74M | — |
| — | Nuveen AMT-Free Municipal Credit Income Fund4.07% floating · due 2031-12-01 | 0.58% | $103.70M | — |
Top 10 positions are 9.60% of net assets, top 25 16.34%, across 1.0K issuers.
See more of this fund's book
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