VTES

VTES is passively managed to hold USD-denominated municipal bonds issued by state and local governments or agencies whose interest is federal tax-exempt and AMT-free. Eligible securities must have a rating of at least investment grade, a minimum par amount of $25 million, and a remaining term to maturity between one month and seven years. The fund seeks to maintain a dollar-weighted average maturity consistent with the index, which typically does not exceed four years. Short-term is defined quite differently for this fund as its underlying index reaches out to the intermediate bond space. The fund uses a sampling strategy to track the market value-weighted index, which rebalances monthly. As with all Vanguard ETFs, VTES only discloses its holdings monthly.