Overview
Investment-grade municipal bonds whose income is exempt from federal tax — the cheapest broad muni fund in existence at 0.03%.
Top Holdings
| Ticker | Holding | Weight |
|---|---|---|
| — | State & local GO bonds | ~40% |
| — | Revenue bonds (utilities, transport, health) | ~55% |
| — | Pre-refunded & other | ~5% |
Fund Details
Investment Thesis
For a high-bracket investor, VTEB's 3.4% federal-tax-free yield is worth roughly 5.4% from a taxable bond fund at the top rate — a spread no investment-grade taxable fund can match at similar risk. Municipal defaults are historically rare, the portfolio is investment-grade throughout, and Vanguard's 0.03% fee undercuts the incumbent MUB. The one structural caveat: munis belong in taxable accounts; inside an IRA the tax exemption is wasted.
Who It's For
High earners holding bonds in taxable accounts — the higher the bracket, the stronger the case. Compare after-tax yields against BND before assuming taxable is better.
10-Year History
| Year | Close | % Chg |
|---|---|---|
| 2016 | $45.69 | -- |
| 2017 | $47.15 | +3.2% |
| 2018 | $46.96 | -0.4% |
| 2019 | $49.50 | +5.4% |
| 2020 | $51.08 | +3.2% |
| 2021 | $50.88 | -0.4% |
| 2022 | $45.99 | -9.6% |
| 2023 | $47.56 | +3.4% |
| 2024 | $47.37 | -0.4% |
| 2025 | $48.22 | +1.8% |
| Year | Yield |
|---|---|
| 2016 | 2.10% |
| 2017 | 2.10% |
| 2018 | 2.20% |
| 2019 | 2.40% |
| 2020 | 2.10% |
| 2021 | 1.60% |
| 2022 | 1.40% |
| 2023 | 2.40% |
| 2024 | 3.20% |
| 2025 | 3.42% |
| Year | AUM | % Chg |
|---|---|---|
| 2016 | $6.0B | -- |
| 2017 | $7.3B | +21.7% |
| 2018 | $9.0B | +23.3% |
| 2019 | $11B | +22.2% |
| 2020 | $13B | +18.2% |
| 2021 | $16B | +23.1% |
| 2022 | $20B | +25.0% |
| 2023 | $25B | +25.0% |
| 2024 | $30B | +20.0% |
| 2025 | $37B | +23.3% |
Historical figures are ETFHub estimates modelled from asset-class return patterns and may differ from official fund records. Data as of August 2026.
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