GMNY vs VTEB

GMNYBGoldman Sachs Dynamic New York Municipal Income ETF

VTEBAVanguard Tax-Exempt Bond ETF

In short

GMNY New York paper, actively picked: income aimed at being exempt from regular federal tax plus New York State and City personal income taxes, at 0.30% net of a waiver through December 29, 2026. No index to copy.

VTEB Vanguard's national muni index fund, running since 2015 at three basis points, a tenth of what the typical muni ETF charges. Its benchmark screens for investment-grade bonds whose income is exempt from federal tax and the AMT.

Stated mandate

GMNY The fund seeks a high level of current income exempt from regular federal income tax and New York State and City personal income taxes. Normally, at least 80% of net assets plus investment borrowings is invested in qualifying municipal fixed-income securities issued by New York and other U.S. public entities.

VTEB VTEB seeks to track an index measuring the investment-grade segment of the U.S. municipal bond market. It uses passive sampling to approximate the index and generally invests in federally tax-exempt municipal securities.

Why people hold it

• GMNY No index to hug. The managers can run duration anywhere from 2 to 8 years and move along the credit spectrum as New York bonds get cheap or rich.gs.com
• The tax angle is the point: at least 80% of assets in qualifying munis, targeting income exempt from regular federal tax and New York State and City personal income taxes.sec.gov
• Holds a few hundred individual New York bonds and pays income monthly, so state-specific exposure arrives in one ticker instead of a bond-desk shopping trip.
• Does what the label says, and lands in the upper half of the muni bond ETFs we grade on how faithfully it delivers its stated mandate.

• VTEB Three basis points a year against a 0.30% muni-ETF median. On tax-exempt bonds, where coupons are modest, that fee gap is a real slice of the payout.
• The index holds only investment-grade munis whose interest is exempt from federal income tax and the alternative minimum tax, so the income carries no AMT surprise.vanguard.com
• A multi-billion-dollar fund and one of the most heavily traded in the muni category, which tends to show up as tight bid-ask spreads. Income is paid monthly.
• It has tracked its benchmark closely and sits among the strongest implementations in a crowded muni bond peer group.

Worth knowing

• GMNY At 0.30% net of a waiver through December 29, 2026 (0.35% gross), it costs well above national index funds like VTEB at 0.03% or MUB at 0.05%. Active work and the New York tax angle are the bill.
• The prospectus allows up to 30% of net assets in non-investment-grade munis, and a one-state portfolio lives with New York's budget and credit headlines.sec.gov
• It launched in 2024 and trades lightly for an ETF, so the record is short and spreads can widen; limit orders are the standard tool here.

• VTEB Federal exemption, not blanket coverage. Income can still be taxable in your home state, which is why single-state funds like NYF exist alongside it.vanguard.com
• Credit quality is investment grade, so rates are the main swing factor: when muni yields rise, bond prices and the fund's share price fall.vanguard.com
• Sampling, not full replication. The fund owns a representative slice of a very large index rather than every bond in it.vanguard.com

Full GMNY profile⁠

Full VTEB profile⁠