UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
N-CSR
CERTIFIED
SHAREHOLDER REPORT
OF
REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment
Company Act file number: 811-02687
| Name of
Registrant: |
Vanguard Municipal Bond Funds |
| Address of Registrant: |
P.O.
Box 2600 |
| |
Valley
Forge, PA 19482 |
| Name
and address of agent for service: |
John E. Schadl, Esquire |
| |
P.O. Box 876 |
| |
Valley
Forge, PA 19482 |
Registrant’s
telephone number, including area code: (610) 669-1000
Date of fiscal
year end: October 31
Date of reporting
period: November 1, 2023—October 31, 2024
Item 1: Reports to Shareholders.
TABLE OF CONTENTS
|
High-Yield Tax-Exempt Fund
Admiral™ Shares - VWALX
|
| |
|
|
High-Yield Tax-Exempt Fund
Investor Shares - VWAHX
|
| |
|
|
Intermediate-Term Tax-Exempt Fund
Admiral™ Shares - VWIUX
|
| |
|
|
Intermediate-Term Tax-Exempt Fund
Investor Shares - VWITX
|
| |
|
|
Limited-Term Tax-Exempt Fund
Admiral™ Shares - VMLUX
|
| |
|
|
Limited-Term Tax-Exempt Fund
Investor Shares - VMLTX
|
| |
|
|
Long-Term Tax-Exempt Fund
Admiral™ Shares - VWLUX
|
| |
|
|
Long-Term Tax-Exempt Fund
Investor Shares - VWLTX
|
| |
|
|
Ultra-Short-Term Tax-Exempt Fund
Admiral™ Shares - VWSUX
|
| |
|
|
Ultra-Short-Term Tax-Exempt Fund
Investor Shares - VWSTX
|
| |
|
|
Municipal Money Market Fund
Investor Shares - VMSXX
|
| |
|
|
Tax-Exempt Bond Index Fund
ETF Shares - VTEB
|
| |
|
|
Tax-Exempt Bond Index Fund
Admiral™ Shares - VTEAX
|
| |
|
|
Intermediate-Term Tax-Exempt Bond ETF
ETF Shares - VTEI
|
| |
|
0000225997nacc2:NACC2IndexBloombergMunicipalBondIndex17518AdditionalIndexMember2016-01-31
Vanguard High-Yield Tax-Exempt Fund
Annual Shareholder Report | October 31, 2024
This annual shareholder report contains important information about Vanguard High-Yield Tax-Exempt Fund (the "Fund") for the period of November 1, 2023, to October 31, 2024. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
Admiral Shares | $10 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended October 31, 2024, the Fund outperformed its benchmark, the Bloomberg Municipal Bond Index.
U.S. economic growth hovered around 3% on a year-over-year basis during the period, quelling recession fears. The Federal Reserve began cutting interest rates for the first time since early 2020, and the year-over-year rate of consumer price inflation eased to around 2.5%. Even with some negative monthly returns, U.S. investment-grade bonds posted strong gains for the fiscal year.
Muni bonds turned in a very strong performance. In late 2023, they rallied as inflation continued to fall and economic data weakened. And in the summer and early fall, cooling consumer prices and the Fed’s move to loosen monetary policy led to more gains.
The biggest contributor to the Fund’s outperformance was an overweight to credit through high-yield, BBB-rated, and A-rated bonds. Sector allocation and security selection also added value, while overall duration detracted.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: October 31, 2014, Through October 31, 2024
Initial investment of $50,000
| Admiral Shares | Bloomberg Municipal Bond Index |
|---|
2014 | $50,000 | $50,000 |
2015 | $51,546 | $51,231 |
2015 | $50,929 | $50,583 |
2015 | $51,010 | $50,762 |
2015 | $51,779 | $51,434 |
2016 | $53,250 | $52,621 |
2016 | $54,162 | $53,260 |
2016 | $55,707 | $54,287 |
2016 | $55,018 | $53,521 |
2017 | $53,434 | $52,474 |
2017 | $54,529 | $53,337 |
2017 | $55,995 | $54,426 |
2017 | $56,673 | $54,694 |
2018 | $56,716 | $54,323 |
2018 | $56,644 | $54,167 |
2018 | $57,601 | $54,967 |
2018 | $56,915 | $54,414 |
2019 | $58,566 | $56,096 |
2019 | $60,519 | $57,503 |
2019 | $62,275 | $58,983 |
2019 | $63,118 | $59,539 |
2020 | $64,813 | $60,946 |
2020 | $60,159 | $58,746 |
2020 | $65,070 | $62,143 |
2020 | $64,974 | $61,679 |
2021 | $67,819 | $63,392 |
2021 | $68,162 | $63,296 |
2021 | $69,795 | $64,187 |
2021 | $68,801 | $63,305 |
2022 | $67,806 | $62,196 |
2022 | $62,706 | $58,306 |
2022 | $63,809 | $59,741 |
2022 | $58,233 | $55,721 |
2023 | $63,867 | $60,175 |
2023 | $63,658 | $59,982 |
2023 | $64,178 | $60,295 |
2023 | $60,042 | $57,195 |
2024 | $66,797 | $61,921 |
2024 | $66,359 | $61,231 |
2024 | $68,461 | $62,552 |
2024 | $68,794 | $62,740 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
Admiral Shares | 14.58% | 1.74% | 3.24% |
Bloomberg Municipal Bond Index | 9.70% | 1.05% | 2.30% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Distribution by Stated Maturity % of Net Assets
(as of October 31, 2024)
Less than 1 Year | 1.6% |
1 to 3 Years | 3.5% |
3 to 5 Years | 4.8% |
5 to 10 Years | 14.3% |
10 to 20 Years | 29.2% |
20 to 30 Years | 33.4% |
Greater than 30 Years | 9.4% |
Other Assets and Liabilities—Net | 3.8% |
Fund Statistics
(as of October 31, 2024)
Fund Net Assets (in millions) | $16,137 |
Number of Portfolio Holdings | 3,354 |
Portfolio Turnover Rate | 29% |
Total Investment Advisory Fees (in thousands) | $1,542 |
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2024 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR5044
Vanguard High-Yield Tax-Exempt Fund
Annual Shareholder Report | October 31, 2024
This annual shareholder report contains important information about Vanguard High-Yield Tax-Exempt Fund (the "Fund") for the period of November 1, 2023, to October 31, 2024. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
Investor Shares | $18 | 0.17% |
How did the Fund perform during the reporting period?
For the 12 months ended October 31, 2024, the Fund outperformed its benchmark, the Bloomberg Municipal Bond Index.
U.S. economic growth hovered around 3% on a year-over-year basis during the period, quelling recession fears. The Federal Reserve began cutting interest rates for the first time since early 2020, and the year-over-year rate of consumer price inflation eased to around 2.5%. Even with some negative monthly returns, U.S. investment-grade bonds posted strong gains for the fiscal year.
Muni bonds turned in a very strong performance. In late 2023, they rallied as inflation continued to fall and economic data weakened. And in the summer and early fall, cooling consumer prices and the Fed’s move to loosen monetary policy led to more gains.
The biggest contributor to the Fund’s outperformance was an overweight to credit through high-yield, BBB-rated, and A-rated bonds. Sector allocation and security selection also added value, while overall duration detracted.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: October 31, 2014, Through October 31, 2024
Initial investment of $10,000
| Investor Shares | Bloomberg Municipal Bond Index |
|---|
2014 | $10,000 | $10,000 |
2015 | $10,307 | $10,246 |
2015 | $10,182 | $10,117 |
2015 | $10,196 | $10,152 |
2015 | $10,347 | $10,287 |
2016 | $10,639 | $10,524 |
2016 | $10,819 | $10,652 |
2016 | $11,125 | $10,857 |
2016 | $10,984 | $10,704 |
2017 | $10,665 | $10,495 |
2017 | $10,881 | $10,667 |
2017 | $11,171 | $10,885 |
2017 | $11,303 | $10,939 |
2018 | $11,309 | $10,865 |
2018 | $11,292 | $10,833 |
2018 | $11,481 | $10,993 |
2018 | $11,342 | $10,883 |
2019 | $11,669 | $11,219 |
2019 | $12,056 | $11,501 |
2019 | $12,403 | $11,797 |
2019 | $12,569 | $11,908 |
2020 | $12,904 | $12,189 |
2020 | $11,975 | $11,749 |
2020 | $12,949 | $12,429 |
2020 | $12,928 | $12,336 |
2021 | $13,491 | $12,678 |
2021 | $13,557 | $12,659 |
2021 | $13,879 | $12,838 |
2021 | $13,678 | $12,661 |
2022 | $13,478 | $12,439 |
2022 | $12,462 | $11,661 |
2022 | $12,678 | $11,948 |
2022 | $11,568 | $11,144 |
2023 | $12,685 | $12,035 |
2023 | $12,641 | $11,996 |
2023 | $12,742 | $12,059 |
2023 | $11,918 | $11,439 |
2024 | $13,256 | $12,384 |
2024 | $13,167 | $12,246 |
2024 | $13,581 | $12,510 |
2024 | $13,644 | $12,548 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
Investor Shares | 14.49% | 1.66% | 3.16% |
Bloomberg Municipal Bond Index | 9.70% | 1.05% | 2.30% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Distribution by Stated Maturity % of Net Assets
(as of October 31, 2024)
Less than 1 Year | 1.6% |
1 to 3 Years | 3.5% |
3 to 5 Years | 4.8% |
5 to 10 Years | 14.3% |
10 to 20 Years | 29.2% |
20 to 30 Years | 33.4% |
Greater than 30 Years | 9.4% |
Other Assets and Liabilities—Net | 3.8% |
Fund Statistics
(as of October 31, 2024)
Fund Net Assets (in millions) | $16,137 |
Number of Portfolio Holdings | 3,354 |
Portfolio Turnover Rate | 29% |
Total Investment Advisory Fees (in thousands) | $1,542 |
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2024 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR44
Vanguard Intermediate-Term Tax-Exempt Fund
Annual Shareholder Report | October 31, 2024
This annual shareholder report contains important information about Vanguard Intermediate-Term Tax-Exempt Fund (the "Fund") for the period of November 1, 2023, to October 31, 2024. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
Admiral Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended October 31, 2024, the Fund outperformed its benchmark, the Bloomberg 1-15 Year Municipal Bond Index.
U.S. economic growth hovered around 3% on a year-over-year basis during the period, quelling recession fears. The Federal Reserve began cutting interest rates for the first time since early 2020, and the year-over-year rate of consumer price inflation eased to around 2.5%. Even with some negative monthly returns, investment-grade bonds posted strong gains for the fiscal year.
Muni bonds turned in a strong performance, rallying in late 2023 and again in the summer and early fall amid signs of progress on inflation and the prospect of looser monetary policy.
The biggest contributor to the Fund’s outperformance was an overweight to credit through high-yield, BBB-rated, and A-rated bonds. Our allocation to 3% coupon bonds and positive security selection, especially in AA-rated bonds, added value. Overall duration and curve positioning were also positive.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: October 31, 2014, Through October 31, 2024
Initial investment of $50,000
| Admiral Shares | Bloomberg 1-15 Year Municipal Bond Index | Bloomberg Municipal Bond Index |
|---|
2014 | $50,000 | $50,000 | $50,000 |
2015 | $51,051 | $50,949 | $51,231 |
2015 | $50,466 | $50,422 | $50,583 |
2015 | $50,600 | $50,581 | $50,762 |
2015 | $51,263 | $51,230 | $51,434 |
2016 | $52,438 | $52,218 | $52,621 |
2016 | $52,950 | $52,675 | $53,260 |
2016 | $53,728 | $53,423 | $54,287 |
2016 | $53,175 | $52,817 | $53,521 |
2017 | $52,140 | $51,975 | $52,474 |
2017 | $52,995 | $52,784 | $53,337 |
2017 | $53,903 | $53,661 | $54,426 |
2017 | $54,166 | $53,841 | $54,694 |
2018 | $53,707 | $53,377 | $54,323 |
2018 | $53,505 | $53,215 | $54,167 |
2018 | $54,245 | $53,981 | $54,967 |
2018 | $53,777 | $53,555 | $54,414 |
2019 | $55,442 | $55,162 | $56,096 |
2019 | $56,621 | $56,187 | $57,503 |
2019 | $58,052 | $57,554 | $58,983 |
2019 | $58,474 | $57,901 | $59,539 |
2020 | $59,704 | $59,111 | $60,946 |
2020 | $57,785 | $57,516 | $58,746 |
2020 | $60,902 | $60,324 | $62,143 |
2020 | $60,680 | $60,020 | $61,679 |
2021 | $62,151 | $61,265 | $63,392 |
2021 | $62,079 | $61,157 | $63,296 |
2021 | $62,788 | $61,771 | $64,187 |
2021 | $62,101 | $61,088 | $63,305 |
2022 | $61,046 | $59,998 | $62,196 |
2022 | $57,756 | $56,999 | $58,306 |
2022 | $59,105 | $58,596 | $59,741 |
2022 | $55,895 | $55,624 | $55,721 |
2023 | $59,766 | $59,143 | $60,175 |
2023 | $59,654 | $58,992 | $59,982 |
2023 | $59,766 | $59,144 | $60,295 |
2023 | $57,445 | $56,998 | $57,195 |
2024 | $61,648 | $60,649 | $61,921 |
2024 | $61,120 | $60,083 | $61,231 |
2024 | $62,325 | $61,035 | $62,552 |
2024 | $62,585 | $61,290 | $62,740 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
Admiral Shares | 8.95% | 1.37% | 2.27% |
Bloomberg 1-15 Year Municipal Bond Index | 7.53% | 1.14% | 2.06% |
Bloomberg Municipal Bond Index | 9.70% | 1.05% | 2.30% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Distribution by Stated Maturity % of Net Assets
(as of October 31, 2024)
Less than 1 Year | 2.7% |
1 to 3 Years | 6.2% |
3 to 5 Years | 7.5% |
5 to 10 Years | 23.0% |
10 to 20 Years | 46.3% |
20 to 30 Years | 10.2% |
Greater than 30 Years | 2.9% |
Other Assets and Liabilities—Net | 1.2% |
Fund Statistics
(as of October 31, 2024)
Fund Net Assets (in millions) | $76,016 |
Number of Portfolio Holdings | 14,035 |
Portfolio Turnover Rate | 31% |
Total Investment Advisory Fees (in thousands) | $7,199 |
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2024 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR542
Vanguard Intermediate-Term Tax-Exempt Fund
Annual Shareholder Report | October 31, 2024
This annual shareholder report contains important information about Vanguard Intermediate-Term Tax-Exempt Fund (the "Fund") for the period of November 1, 2023, to October 31, 2024. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
Investor Shares | $18 | 0.17% |
How did the Fund perform during the reporting period?
For the 12 months ended October 31, 2024, the Fund outperformed its benchmark, the Bloomberg 1-15 Year Municipal Bond Index.
U.S. economic growth hovered around 3% on a year-over-year basis during the period, quelling recession fears. The Federal Reserve began cutting interest rates for the first time since early 2020, and the year-over-year rate of consumer price inflation eased to around 2.5%. Even with some negative monthly returns, investment-grade bonds posted strong gains for the fiscal year.
Muni bonds turned in a strong performance, rallying in late 2023 and again in the summer and early fall amid signs of progress on inflation and the prospect of looser monetary policy.
The biggest contributor to the Fund’s outperformance was an overweight to credit through high-yield, BBB-rated, and A-rated bonds. Our allocation to 3% coupon bonds and positive security selection, especially in AA-rated bonds, added value. Overall duration and curve positioning were also positive.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: October 31, 2014, Through October 31, 2024
Initial investment of $10,000
| Investor Shares | Bloomberg 1-15 Year Municipal Bond Index | Bloomberg Municipal Bond Index |
|---|
2014 | $10,000 | $10,000 | $10,000 |
2015 | $10,208 | $10,190 | $10,246 |
2015 | $10,089 | $10,084 | $10,117 |
2015 | $10,114 | $10,116 | $10,152 |
2015 | $10,244 | $10,246 | $10,287 |
2016 | $10,477 | $10,444 | $10,524 |
2016 | $10,577 | $10,535 | $10,652 |
2016 | $10,730 | $10,685 | $10,857 |
2016 | $10,616 | $10,563 | $10,704 |
2017 | $10,407 | $10,395 | $10,495 |
2017 | $10,575 | $10,557 | $10,667 |
2017 | $10,753 | $10,732 | $10,885 |
2017 | $10,803 | $10,768 | $10,939 |
2018 | $10,709 | $10,675 | $10,865 |
2018 | $10,666 | $10,643 | $10,833 |
2018 | $10,812 | $10,796 | $10,993 |
2018 | $10,717 | $10,711 | $10,883 |
2019 | $11,047 | $11,032 | $11,219 |
2019 | $11,279 | $11,237 | $11,501 |
2019 | $11,562 | $11,511 | $11,797 |
2019 | $11,644 | $11,580 | $11,908 |
2020 | $11,886 | $11,822 | $12,189 |
2020 | $11,502 | $11,503 | $11,749 |
2020 | $12,120 | $12,065 | $12,429 |
2020 | $12,073 | $12,004 | $12,336 |
2021 | $12,363 | $12,253 | $12,678 |
2021 | $12,347 | $12,231 | $12,659 |
2021 | $12,485 | $12,354 | $12,838 |
2021 | $12,346 | $12,218 | $12,661 |
2022 | $12,134 | $12,000 | $12,439 |
2022 | $11,478 | $11,400 | $11,661 |
2022 | $11,744 | $11,719 | $11,948 |
2022 | $11,103 | $11,125 | $11,144 |
2023 | $11,870 | $11,829 | $12,035 |
2023 | $11,846 | $11,798 | $11,996 |
2023 | $11,865 | $11,829 | $12,059 |
2023 | $11,402 | $11,400 | $11,439 |
2024 | $12,234 | $12,130 | $12,384 |
2024 | $12,127 | $12,017 | $12,246 |
2024 | $12,364 | $12,207 | $12,510 |
2024 | $12,413 | $12,258 | $12,548 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
Investor Shares | 8.86% | 1.29% | 2.18% |
Bloomberg 1-15 Year Municipal Bond Index | 7.53% | 1.14% | 2.06% |
Bloomberg Municipal Bond Index | 9.70% | 1.05% | 2.30% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Distribution by Stated Maturity % of Net Assets
(as of October 31, 2024)
Less than 1 Year | 2.7% |
1 to 3 Years | 6.2% |
3 to 5 Years | 7.5% |
5 to 10 Years | 23.0% |
10 to 20 Years | 46.3% |
20 to 30 Years | 10.2% |
Greater than 30 Years | 2.9% |
Other Assets and Liabilities—Net | 1.2% |
Fund Statistics
(as of October 31, 2024)
Fund Net Assets (in millions) | $76,016 |
Number of Portfolio Holdings | 14,035 |
Portfolio Turnover Rate | 31% |
Total Investment Advisory Fees (in thousands) | $7,199 |
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2024 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR42
Vanguard Limited-Term Tax-Exempt Fund
Annual Shareholder Report | October 31, 2024
This annual shareholder report contains important information about Vanguard Limited-Term Tax-Exempt Fund (the "Fund") for the period of November 1, 2023, to October 31, 2024. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
Admiral Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended October 31, 2024, the Fund outperformed its benchmark, the Bloomberg 1-5 Year Municipal Bond Index.
U.S. economic growth hovered around 3% on a year-over-year basis during the period, quelling recession fears. The Federal Reserve began cutting interest rates for the first time since early 2020, and the year-over-year rate of consumer price inflation eased to around 2.5%. Even with some negative monthly returns, U.S. investment-grade bonds posted strong gains for the fiscal year.
Muni bonds turned in a very strong performance. In late 2023, they rallied as inflation continued to fall and economic data weakened, leading the markets to presume that interest rates had peaked. And in the summer and early fall, cooling consumer prices and the Fed’s move to loosen monetary policy led to more gains.
The biggest contributor to the Fund’s outperformance was an overweight to credit through high-yield, BBB-rated, and A-rated bonds.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: October 31, 2014, Through October 31, 2024
Initial investment of $50,000
| Admiral Shares | Bloomberg 1-5 Year Municipal Bond Index | Bloomberg Municipal Bond Index |
|---|
2014 | $50,000 | $50,000 | $50,000 |
2015 | $50,384 | $50,333 | $51,231 |
2015 | $50,127 | $50,124 | $50,583 |
2015 | $50,237 | $50,295 | $50,762 |
2015 | $50,617 | $50,697 | $51,434 |
2016 | $50,999 | $51,005 | $52,621 |
2016 | $51,151 | $51,187 | $53,260 |
2016 | $51,542 | $51,569 | $54,287 |
2016 | $51,331 | $51,249 | $53,521 |
2017 | $50,935 | $51,008 | $52,474 |
2017 | $51,419 | $51,505 | $53,337 |
2017 | $51,862 | $51,912 | $54,426 |
2017 | $51,931 | $51,926 | $54,694 |
2018 | $51,637 | $51,630 | $54,323 |
2018 | $51,533 | $51,437 | $54,167 |
2018 | $52,111 | $52,110 | $54,967 |
2018 | $51,931 | $51,842 | $54,414 |
2019 | $52,873 | $52,834 | $56,096 |
2019 | $53,428 | $53,302 | $57,503 |
2019 | $54,282 | $54,271 | $58,983 |
2019 | $54,445 | $54,383 | $59,539 |
2020 | $55,093 | $55,053 | $60,946 |
2020 | $54,257 | $54,380 | $58,746 |
2020 | $56,040 | $56,035 | $62,143 |
2020 | $56,065 | $56,005 | $61,679 |
2021 | $56,678 | $56,485 | $63,392 |
2021 | $56,678 | $56,493 | $63,296 |
2021 | $56,962 | $56,734 | $64,187 |
2021 | $56,672 | $56,459 | $63,305 |
2022 | $56,019 | $55,583 | $62,196 |
2022 | $54,472 | $53,880 | $58,306 |
2022 | $55,502 | $55,140 | $59,741 |
2022 | $53,910 | $53,319 | $55,721 |
2023 | $55,952 | $55,334 | $60,175 |
2023 | $55,858 | $55,105 | $59,982 |
2023 | $56,032 | $55,244 | $60,295 |
2023 | $55,388 | $54,489 | $57,195 |
2024 | $57,452 | $56,459 | $61,921 |
2024 | $57,426 | $56,193 | $61,231 |
2024 | $58,324 | $57,043 | $62,552 |
2024 | $58,862 | $57,550 | $62,740 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
Admiral Shares | 6.27% | 1.57% | 1.65% |
Bloomberg 1-5 Year Municipal Bond Index | 5.62% | 1.14% | 1.42% |
Bloomberg Municipal Bond Index | 9.70% | 1.05% | 2.30% |
This table reflects the Fund's investments, including short-term investments and other assets and liabilities.
Distribution by Stated Maturity % of Net Assets
(as of October 31, 2024)
Less than 1 Year | 16.9% |
1 to 3 Years | 24.5% |
3 to 5 Years | 22.9% |
5 to 10 Years | 27.5% |
10 to 20 Years | 2.0% |
20 to 30 Years | 4.7% |
Greater than 30 Years | 0.6% |
Other Assets and Liabilities—Net | 0.9% |
Fund Statistics
(as of October 31, 2024)
Fund Net Assets (in millions) | $30,272 |
Number of Portfolio Holdings | 7,177 |
Portfolio Turnover Rate | 50% |
Total Investment Advisory Fees (in thousands) | $2,927 |
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2024 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR531
Vanguard Limited-Term Tax-Exempt Fund
Annual Shareholder Report | October 31, 2024
This annual shareholder report contains important information about Vanguard Limited-Term Tax-Exempt Fund (the "Fund") for the period of November 1, 2023, to October 31, 2024. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
Investor Shares | $18 | 0.17% |
How did the Fund perform during the reporting period?
For the 12 months ended October 31, 2024, the Fund outperformed its benchmark, the Bloomberg 1-5 Year Municipal Bond Index.
U.S. economic growth hovered around 3% on a year-over-year basis during the period, quelling recession fears. The Federal Reserve began cutting interest rates for the first time since early 2020, and the year-over-year rate of consumer price inflation eased to around 2.5%. Even with some negative monthly returns, U.S. investment-grade bonds posted strong gains for the fiscal year.
Muni bonds turned in a very strong performance. In late 2023, they rallied as inflation continued to fall and economic data weakened, leading the markets to presume that interest rates had peaked. And in the summer and early fall, cooling consumer prices and the Fed’s move to loosen monetary policy led to more gains.
The biggest contributor to the Fund’s outperformance was an overweight to credit through high-yield, BBB-rated, and A-rated bonds.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: October 31, 2014, Through October 31, 2024
Initial investment of $10,000
| Investor Shares | Bloomberg 1-5 Year Municipal Bond Index | Bloomberg Municipal Bond Index |
|---|
2014 | $10,000 | $10,000 | $10,000 |
2015 | $10,075 | $10,067 | $10,246 |
2015 | $10,022 | $10,025 | $10,117 |
2015 | $10,042 | $10,059 | $10,152 |
2015 | $10,115 | $10,139 | $10,287 |
2016 | $10,189 | $10,201 | $10,524 |
2016 | $10,218 | $10,237 | $10,652 |
2016 | $10,293 | $10,314 | $10,857 |
2016 | $10,248 | $10,250 | $10,704 |
2017 | $10,166 | $10,202 | $10,495 |
2017 | $10,260 | $10,301 | $10,667 |
2017 | $10,346 | $10,382 | $10,885 |
2017 | $10,357 | $10,385 | $10,939 |
2018 | $10,296 | $10,326 | $10,865 |
2018 | $10,273 | $10,287 | $10,833 |
2018 | $10,386 | $10,422 | $10,993 |
2018 | $10,349 | $10,368 | $10,883 |
2019 | $10,535 | $10,567 | $11,219 |
2019 | $10,643 | $10,660 | $11,501 |
2019 | $10,811 | $10,854 | $11,797 |
2019 | $10,841 | $10,877 | $11,908 |
2020 | $10,968 | $11,011 | $12,189 |
2020 | $10,799 | $10,876 | $11,749 |
2020 | $11,152 | $11,207 | $12,429 |
2020 | $11,155 | $11,201 | $12,336 |
2021 | $11,275 | $11,297 | $12,678 |
2021 | $11,272 | $11,299 | $12,659 |
2021 | $11,327 | $11,347 | $12,838 |
2021 | $11,267 | $11,292 | $12,661 |
2022 | $11,135 | $11,117 | $12,439 |
2022 | $10,825 | $10,776 | $11,661 |
2022 | $11,027 | $11,028 | $11,948 |
2022 | $10,709 | $10,664 | $11,144 |
2023 | $11,112 | $11,067 | $12,035 |
2023 | $11,092 |
