| Investment Objective: |
Vanguard Short Duration Tax-Exempt Bond ETF seeks current income exempt from federal tax by investing in municipal bonds with a dollar-weighted average nominal maturity between 2 and 7 years. The fund emphasizes high credit quality, with a majority of the fund's holdings rated investment-grade. The fund's advisor, Vanguard Fixed Income Group, seeks to add value by making small adjustments to the fund's maturity structure, based on factors such as interest-rate outlook and slope of the yield curve. Vanguard's independent research capabilities assist in identifying specific issues and market sectors that represent good relative value. Under normal circumstances, the fund will invest at least 80% of its assets (plus any borrowings for investment purposes) in municipal bonds denominated in U.S. dollars from a variety of issuers that are primarily U.S. states or local governments or agencies whose interest is exempt from federal income taxes and the federal alternative minimum tax. The majority of the fund's exposure to fixed income securities is expected to have credit quality that is investment-grade. |
