TFI vs VCRM

TFIAState Street SPDR Nuveen ICE Municipal Bond ETF

VCRMAVanguard Core Tax-Exempt Bond E

In short

TFI Launched in 2007, this is one of the elder statesmen of municipal bond ETFs: roughly 1,900 AMT-free bonds, income paid monthly, and a fee that sits under the category median.

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

TFI The fund seeks to track, before fees and expenses, the price and yield performance of the ICE 1+ Year AMT-Free Broad Municipal Index.

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

Why people hold it

• TFI 0.23% expense ratio, below the 0.30% median for muni bond ETFs.
• About 1,900 bonds spread across the US muni market, so no single issuer or project carries much weight.
• Tracks the ICE 1+ Year AMT-Free Broad Municipal Index closely, and ranks among the stronger implementations in a crowded muni field.ssga.com
• Pays monthly, and the index screens out bonds subject to the alternative minimum tax.

• 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

• TFI Three-basis-point rivals like VTEB and SCMB cover broad munis for a fraction of the fee. Here you pay more for a track record dating to 2007.
• The index runs from one-year paper out to the long end, so share prices move with interest rates.
• Volume is moderate rather than heavy, so spreads can run wider than at the largest muni funds.

• 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 TFI profile⁠

Full VCRM profile⁠