ETF Evaluator:
Vanguard Core Tax-Exempt Bond ETF ()
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(as of Aug 26)
Best Performing in Muni National Long Over the Last Year
| 8.5% | Rareview Tax Advantaged Income ETF (RTAI) |
| 8.4% | First Trust Flexible Muncpl Hgh Inc ETF (MFLX) |
| 8.1% | VanEck Long Muni ETF (MLN) |
| 7.9% | Overlay Shares Municipal Bond ETF (OVM) |
| 7.6% | iShares Long-Term National Muni Bd ETF (LMUB) |
Risk
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Risk
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ETF Details
Vanguard Core Tax-Exempt Bond ETF Overview
Vanguard Core Tax-Exempt Bond ETF (VCRM) is an actively managed Municipal Bond Muni National Long exchange-traded fund (ETF). Vanguard launched the ETF in 2024.
The investment seeks to provide total return through current income that is exempt from federal personal income taxes and capital appreciation.
Under normal circumstances, the fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in debt securities that are primarily issued by U.S. states, local governments, or agencies and whose interest is exempt from federal income taxes and the federal alternative minimum tax (AMT). It is non-diversified.
About Vanguard Core Tax-Exempt Bond ETF (VCRM)
There are 2 members of the management team with an average tenure of 1.69 years: Stephen McFee (2024) and Mathew Kiselak (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and S&P BROAD AMT- FREE MUNICIPAL TR USD index with a weighting of 100%. Vanguard Core Tax-Exempt Bond ETF has 2347 securities in its portfolio. The top 10 holdings constitute 5.7% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Vanguard Core Tax-Exempt Bond ETF is part of the Fixed Income global asset class and is within the Municipal Bond ETF group. Vanguard Core Tax-Exempt Bond ETF has 0.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.7% (99.4% domestic bond, 0.3% foreign bond and 0.0% convertible bond). Vanguard Core Tax-Exempt Bond ETF has 0.3% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is above the $744 million average for the Muni National Long category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VCRM Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Core Tax-Exempt Bond ETF expense ratio is low compared to funds in the Muni National Long category. Vanguard Core Tax-Exempt Bond ETF has an expense ratio of 0.12%, which is 77% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Core Tax-Exempt Bond ETF has a portfolio turnover rate of 18%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 22% for the Muni National Long category.
Recently, in the month of July 2026, Vanguard Core Tax-Exempt Bond ETF returned -1.6%, which earned it a grade of A, as the Muni National Long category had an average return of -2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Vanguard Core Tax-Exempt Bond ETF has a trailing yield of 3.70%, which is below the 4.12% category average.
The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard Core Tax-Exempt Bond ETF Grades
Year to date, the ETF has returned 1.0%, 0.0 percentage points better than the category, which translates into a grade of C. The fund has returned 6.4% over the past year (grade of F).
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VCRM Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VCRM Return (NAV) | -1.6% | -0.2% | 6.4% | na | na | na |
| VCRM Return (Price) | -1.5% | -0.1% | 6.6% | na | na | na |
| NAV +/- Price Return | -0.078% | -0.079% | -0.216% | na | na | na |
| Muni National Long Avg | -2.0% | -0.4% | 7.0% | 3.6% | -0.4% | 1.6% |
| VCRM Grade (NAV) | A | B | F | na | na | na |
| +/- Category (NAV) | 0.4% | 0.2% | -0.6% | na | na | na |
| VCRM Tax-Cost Ratio | na | na | 0.0% | na | na | na |
VCRM Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VCRM Return (NAV) | 1.0% | 5.1% | na | na | na | na | na | na | na | na | na |
| VCRM Return (Price) | 1.1% | 4.9% | na | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | 0.094% | -0.039% | na | na | na | na | na | na | na | na | na |
| Muni National Long Avg | 1.0% | 3.9% | 2.5% | 7.4% | -14.7% | 3.3% | 6.6% | 10.0% | -0.2% | 6.9% | 1.3% |
| VCRM Grade (NAV) | C | A | na | na | na | na | na | na | na | na | na |
| +/- Category | 0.0% | 1.2% | na | na | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | na |
| R-Squared: | na |
| Standard Deviation: | na |
| Category Risk Index: | na |
| Category Risk Rating: | |
| Total Risk Index: | na |
| Total Risk Rating: | |
| Portfolio Characteristics | |
| Yield: | 3.7% |
| Total Assets: | $ 1,796 Mil |
| Share Class Assets: | $ 1,796 Mil |
| Turnover: | 18.0% |
| Expense Ratio: | 0.12% |
| Index Fund: | No |
| Index Tracked: | Bloomberg Municipal TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 1.7 years | |||
| Average Tenure: 1.7 years | |||
| Managers (Year): McFee Stephen (2024), Kiselak Mathew (2024) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 2347 |
| % in Top 10 Holdings: | 5.7% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 0.3% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 99.4% |
| Foreign Bond: | 0.3% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.3% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Vanguard |
| Phone Number: | 866-499-8473 |
| Website: | www.vanguard.com |
| Inception Date: | November 21, 2024 |
Expenses and Fees
| Expense Ratio (%): | 0.12% (Rating: Low) |
| Category Average Expense Ratio (%): | 0.52% |
