GMUB vs VCRM

GMUBAGoldman Sachs Municipal Income ETF

VCRMAVanguard Core Tax-Exempt Bond E

In short

GMUB Goldman's 2024 muni entry skips the index-hugging playbook: no declared benchmark, roughly 240 bonds chosen by the desk, 0.18% a year. Cheaper than the typical muni fund, pricier than the index giants.

VCRM Vanguard'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.

Stated mandate

GMUB The Fund seeks substantial current income that is exempt from regular federal income tax.

VCRM The fund seeks total return through current income exempt from federal personal income taxes and capital appreciation.

Why people hold it

• GMUB 0.18% a year undercuts the typical muni bond fund, so the active work costs less than the category norm.
• Targets substantial current income exempt from regular federal income tax, and pays it out monthly.
• Spreads across roughly 240 municipal bonds with no declared index to shadow, leaving credit selection to the managers.
• Stands in the top quartile of a muni field running to over a hundred funds, a strong showing for a young launch.

• VCRM 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.vanguard.com
• Sticks tightly to its stated mandate and grades among the strongest implementations in its muni peer group.

Worth knowing

• GMUB Index rivals VTEB and MUB charge single-digit basis points, so the active mandate here starts each year behind on cost.
• Thinly traded next to the muni heavyweights, which can mean wider spreads at the moment you trade.
• Launched July 2024, so the track record is short and covers only one stretch of the rate cycle.

• VCRM 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

Full GMUB profile⁠

Full VCRM profile⁠