ETF Evaluator:
Vanguard California Tax-Exempt Bond ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Muni California Intermediate Over the Last Year
| 5.8% | American Century California Muni Bd ETF (CATF) |
| 5.3% | Goldman Sachs Dynamic CA Muncpl Inc ETF (GCAL) |
| 4.9% | Vanguard California Tax-Exempt Bond ETF (VTEC) |
| 4.6% | Muni California Intermediate () |
| 4.1% | JPMorgan California Tax Free Bond ETF (JCAL) |
Risk
Index
Risk
Index
ETF Details
Vanguard California Tax-Exempt Bond ETF Overview
Vanguard California Tax-Exempt Bond ETF (VTEC) is a passively managed Municipal Bond Muni California Intermediate exchange-traded fund (ETF). Vanguard launched the ETF in 2024.
The investment seeks to track the performance of the S&P California AMT-Free Municipal Bond Index.
This index measures the performance of the investment-grade segment of the California municipal bond market as determined by the index provider, S&P Dow Jones Indices LLC. All of the fund’s investments will be selected through the sampling process, and at least 80% of the fund’s assets will be invested in securities held in the index. It is non-diversified.
About Vanguard California Tax-Exempt Bond ETF (VTEC)
There are 1 members of the management team with an average tenure of 2.51 years: Justin Schwartz (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 California AMT-Free Muni Bond TR USD index with a weighting of 100%. Vanguard California Tax-Exempt Bond ETF has 3830 securities in its portfolio. The top 10 holdings constitute 2.8% 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 California Tax-Exempt Bond ETF is part of the Fixed Income global asset class and is within the Municipal Bond ETF group. Vanguard California Tax-Exempt Bond ETF has 0.0% 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 97.7% (97.7% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard California Tax-Exempt Bond ETF has 2.3% of the portfolio in cash.
Assets Under Management
The fund has $3 billion in total assets, which is above the $772 million average for the Muni California Intermediate 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.
VTEC 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 California Tax-Exempt Bond ETF expense ratio is low compared to funds in the Muni California Intermediate category. Vanguard California Tax-Exempt Bond ETF has an expense ratio of 0.06%, which is 76% 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 California Tax-Exempt Bond ETF has a portfolio turnover rate of 30%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 69% for the Muni California Intermediate category.
Recently, in the month of July 2026, Vanguard California Tax-Exempt Bond ETF returned -1.7%, which earned it a grade of D, as the Muni California Intermediate category had an average return of -1.5%. 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 California Tax-Exempt Bond ETF has a trailing yield of 3.20%, which is below the 3.27% 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 California Tax-Exempt Bond ETF Grades
Year to date, the ETF has returned 0.0%, 0.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 4.9% over the past year (grade of C).
For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Vanguard California Tax-Exempt Bond ETF, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
VTEC 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 |
|
| VTEC Return (NAV) | -1.7% | -0.5% | 4.9% | na | na | na |
| VTEC Return (Price) | -1.7% | -0.6% | 5.1% | na | na | na |
| NAV +/- Price Return | -0.027% | 0.024% | -0.137% | na | na | na |
| Muni California Intermediate Avg | -1.5% | -0.5% | 4.6% | 2.9% | 0.5% | 1.4% |
| VTEC Grade (NAV) | D | D | C | na | na | na |
| +/- Category (NAV) | -0.2% | -0.0% | 0.3% | na | na | na |
| VTEC Tax-Cost Ratio | na | na | 0.0% | na | na | na |
VTEC Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VTEC Return (NAV) | 0.0% | 3.6% | na | na | na | na | na | na | na | na | na |
| VTEC Return (Price) | -0.1% | 4.0% | na | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | -4.228% | 0.095% | na | na | na | na | na | na | na | na | na |
| Muni California Intermediate Avg | 0.2% | 4.0% | 1.6% | 5.4% | -9.3% | -0.1% | 4.1% | 5.7% | 1.2% | 3.6% | -0.6% |
| VTEC Grade (NAV) | D | F | na | na | na | na | na | na | na | na | na |
| +/- Category | -0.2% | -0.4% | 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: | 3.2% |
| Total Assets: | $ 3,078 Mil |
| Share Class Assets: | $ 3,078 Mil |
| Turnover: | 30.0% |
| Expense Ratio: | 0.06% |
| Index Fund: | Yes |
| 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: 1 | |||
| Longest Tenure: 2.5 years | |||
| Average Tenure: 2.5 years | |||
| Managers (Year): Schwartz Justin (2024) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 3830 |
| % in Top 10 Holdings: | 2.8% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 97.7% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 2.3% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Vanguard |
| Phone Number: | 866-499-8473 |
| Website: | www.vanguard.com |
| Inception Date: | January 26, 2024 |
Expenses and Fees
| Expense Ratio (%): | 0.06% (Rating: Low) |
| Category Average Expense Ratio (%): | 0.25% |
