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Investors with a focus on tax-free income have two new choices to consider from Vanguard as the asset manager launches a pair of municipal bond exchange-traded funds. Tax advantages The biggest selling point for municipal bond funds is the tax-free income they provide. VTEC follows the S & P California AMT-Free Municipal Bond Index, while VTEI tracks the S & P Intermediate Term National AMT-Free Municipal Bond Index. However, in November, $2.8 billion in assets flowed into intermediate-term muni bond funds, followed by another $2.3 billion in December, Morningstar found. said Foos of municipal bond funds.
Persons: Beth Foos, there's, VTEI, Jeffrey Johnson, Johnson, Morningstar, it's Organizations: Vanguard, California, Bond, Federal Reserve, Morningstar, York Life Investments, Free Municipal Bond Index, Free Municipal Bond, muni, Treasury Locations: California
Entering 2023, many investment experts and economists predicted the U.S. was heading toward a recession, but so far growth has been surprisingly strong. Vanguard is perhaps best known as a leader in low-cost passive index investing in both mutual funds and exchange-traded funds. The firm does have active products, however, such as the Vanguard Core Bond Fund (VCORX) . On Friday, Vanguard announced it was launching two new municipal bond index ETFs — Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) and Vanguard California Tax-Exempt Bond ETF (VTEC). Even as the economy starts to slow, Devereux said Vanguard expects a "hawkish hold" from the Fed on interest rates.
Persons: Sara Devereux, CNBC's Bob Pisani, Devereux, Dereveux, They're Organizations: Vanguard's Investment Management Group, The Commerce Department, Vanguard, Bond Fund, Bond, Vanguard California, CNBC Locations: U.S
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