Category Review
Municipal bond funds are down for the year after a third-quarter selloff erased the first-half gain
Vanguard Core Tax-Exempt Bond E
$72.14+0.41 (+0.57%)
- 0.12%
- $1.9B
- −1.3%
- 3.93%
- 0.5M sh
- $71.55
- low $70.85high $77.05
The ETF.net VCRM Grade
A
Score 85 out of 100
- 3 of 63
Score 85 of 100 falls in the A band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.A89 out of 100Rank 8 of 63Mission
Whether the fund did what it promised, tested against its stated mandate.A100 out of 100Rank 1 of 59Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.B65 out of 100Rank 4 of 63Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.A89 out of 100Rank 1 of 63Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.A75 out of 100Rank 16 of 63Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.A72 out of 100Rank 16 of 63
Our read on VCRM
AVanguard's active answer in a mostly-index category: managers working the whole muni curve for 0.12% a year, under half the muni ETF median fee. Monthly income, exempt from federal personal income taxes.
The fund seeks total return through current income exempt from federal personal income taxes and capital appreciation.
Why people hold it
- Active management priced at 0.12% a year, less than half the 0.30% median for muni ETFs.
- Run by Vanguard's Fixed Income Group, with all-curve exposure to primarily high-quality investment-grade munis spread across sectors, states and credit tiers.prnewswire.com
- Pays monthly, with income the fund seeks to keep exempt from federal personal income taxes.personal.vanguard.com
- Sticks tightly to its stated mandate and grades among the strongest implementations in its muni peer group.
Worth knowing
- You pay up for the manager: index peers VTEB and SCMB run at 0.03%, a quarter of VCRM's 0.12%.
- Launched in November 2024, so there is only a short record to judge the active mandate on.
- All-curve exposure puts longer maturities in the mix, so prices move with rates. And the exemption is federal: state treatment of a national muni fund depends on where you live.prnewswire.com
VCRM Holdings
- Bonds
- 2,386
- 10%
- Vanguard Municipal Low Duration Fund 12/31/2049
Geography
- United States99.73%
- Puerto Rico0.22%
- GUAM0.04%
- Virgin Islands0.01%
VCRM Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
Not enough history yet.Not enough history yet.Not enough history yet.
VCRM$9,872
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | VCRM |
|---|---|
| Year to date | −2.4% |
| 1 month | −1.9% |
| 3 months | −4.6% |
| 1 year | −1.3% |
| 3 years | — |
| 5 years | — |
| 10 years | — |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | VCRM |
|---|---|---|
| 2026 YTD | −2.4% | |
| 2025 | +4.9% | |
| 2024 | −0.6% |
VCRM in the news
VCRM Dividends
- 3.93%
- $2.82
- $0.21 per share
- Monthly
Distribution history
VCRM Risk
- 5.0%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- −0.73
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −6.3%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 0.17
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
VCRM Cost
0.12%
VCRM0.12%
- The middle half of Other Municipal Bond funds
- Median 0.30%
7 of the 63 Other Municipal Bond funds charge less.
Other funds in Other Municipal Bond
- AMUBiShares National Muni Bond ETFExpense ratio 0.05%1 year return −2.2%
- ASCMBSchwab Municipal Bond ETFExpense ratio 0.03%1 year return −2.5%
- ATFIState Street SPDR Nuveen ICE Municipal Bond ETFExpense ratio 0.23%1 year return −2.9%
- ACMFiShares California Muni Bond ETFExpense ratio 0.08%1 year return −2.3%
- ANYFiShares New York Muni Bond ETFExpense ratio 0.09%1 year return −2.3%