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A Steady, Low-Cost Muni Fund

Silver-rated Vanguard Intermediate-Term Tax-Exempt Fund boasts solid long-term returns, thanks in part to its straightforward approach and low costs.


Beth Foos: The Vanguard suite of tax-exempt funds is backed by significant analytical and managerial firepower. That, combined with relatively low price tags, makes for a generally compelling package for municipal-bond investors.

Vanguard uses a "hub and satellite" structure to build its strategies. The hub consists of senior managers with big-picture expertise that set policy for interest-rate, sector, and quality positioning. Other managers, credit analysts, and traders make up the team's interest-rate, tax-backed, revenue-backed, and high-yield satellites and are responsible for implementing strategies set by the hub.

Elizabeth Foos does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.