GUMI vs VTES

GUMIAGoldman Sachs Ultra Short Municipal Income ETF

VTESAVanguard Short-Term Tax-Exempt Bond ETF

In short

GUMI Goldman keeps this muni portfolio on a six-month leash: active management, tax-exempt income, and minimal rate sensitivity. In a cohort of short-term muni funds, it sits at the ultra-short end and costs less than the typical rival.

VTES Vanguard's muni ETF on a short leash: an AMT-free tax-exempt index, but capped at seven years to trim interest-rate sensitivity. Five basis points, roughly 2,700 bonds, income paid monthly.

Stated mandate

GUMI The Fund seeks high current income with relatively low principal volatility, aiming for income exempt from regular federal income tax. It normally invests at least 80% of its assets plus investment borrowings in tax-exempt municipal securities.

VTES The Fund seeks to track an index representing investment-grade U.S. municipal bonds with remaining maturities from one month through seven years.

Why people hold it

• GUMI Duration target of about half a year, plus or minus three months, so price moves from rate swings are far smaller than in longer muni funds.sec.gov
• Cheap for an actively run muni fund: 0.16% a year, below the 0.25% median for its short-term muni peer group.
• At least 80% of assets in tax-exempt munis, with income exempt from regular federal income tax and paid out monthly.
• Human managers, not an index: credit work, relative-value trades and tax-loss harvesting across roughly 200 positions.sec.gov

• VTES Costs 0.05% a year, a fraction of what the typical muni-bond fund in its category charges. One of the cheapest ways into tax-exempt bonds.
• Maturities run one month to seven years, so the portfolio moves less on rate swings than long-dated muni funds. Short duration is the whole point here.vanguard.com
• The index is AMT-free national investment-grade munis, so interest is federally tax-exempt and not caught by the alternative minimum tax.vanguard.com
• Roughly 2,700 bonds via index sampling, run by Vanguard's fixed income group, with distributions paid monthly. It tracks its benchmark closely.vanguard.com

Worth knowing

• GUMI Up to 100% of net assets can sit in private activity bonds, whose income may be subject to the federal alternative minimum tax.gs.com
• Thinly traded next to cohort heavyweights like SUB and VTES, which makes limit orders the sane way in and out.
• Launched in 2024, so the track record is short by muni-fund standards.

• VTES Short maturities cut both ways. Vanguard's own materials describe moderate current income, the trade-off for less rate sensitivity than longer muni portfolios.vanguard.com
• It's a national fund, so it isn't structured to shelter state income tax the way single-state muni ETFs such as NYF are.
• Launched in 2023, it has a shorter live record than muni ETFs that have been trading for over a decade, including its broader sibling VTEB.

Full GUMI profile⁠

Full VTES profile⁠