NATIONAL MUNICIPAL BOND FUNDS
Fund Name (Ticker) Total Return (%) Yield
(%)
Exp.
Ratio
(%)
Risk Index Average
YTD* 2003 2002 2001 2000 1999 5-Yr Cat. Total Duration Maturity
(Yrs)
Credit
Quality
Short-Term
Strong Short-Term Muni Bond Invt (STSMX) 0.4 4 5 5.1 5 1.1 4 3.3 0.6 1 0.09 1.8 1.8 A
USAA Tax-Exempt Short-Term (USSTX) -0.1 2.9 5 5 6 1.6 4.1 2.6 0.54 1.07 0.1 1.9 2.1 AA
Vanguard Ltd-Term Tax-Exempt (VMLTX) -0.3 2.7 6.3 5.5 6.3 1.4 4.4 3 0.17 1.53 0.14 2.5 2.9 AA
Vanguard Short-Term Tax-Exempt (VWSTX) 0.1 1.6 3.4 4.7 4.9 2.5 3.4 1.9 0.17 0.6 0.06 1.1 1.2 AA
Intermediate-Term
USAA Tax-Exempt Intermediate-Term (USATX) -0.5 5.1 7.6 5.5 9.8 -2.6 5 4.6 0.49 0.88 0.23 4.5 8.6 AA
Fidelity Spartan Interm Muni Income (FLTMX) -0.5 5.1 9 5.4 9.2 -1.0 5.5 3.5 0.42 1 0.26 5.5 8.2 AA
Northern Intermediate Tax-Exempt (NOITX) -1.1 4.6 9.1 7.8 8 -1.0 5.6 3 0.85 1.14 0.3 5.6 8.8 AA
Vanguard Interm-Term Tax-Exempt (VWITX) -1.0 4.4 7.9 5 9.2 -0.5 5.1 4 0.17 0.98 0.25 4.6 5.6 AAA
T Rowe Price Summit Municipal Interm (PRSMX) -0.8 4.4 8.6 5.6 8.7 -1.2 5.2 3.8 0.5 0.98 0.25 4.6 8.1 AA
T Rowe Price Tax-Free Interm Bond (PTIBX) -1.1 3.8 8.7 5.2 9.4 -1.2 5.1 3.6 0.56 1.02 0.27 3.1 3.8 AA
Schwab Short/Intermed Tax-Free Bond (SWITX) -0.8 3.4 7.6 4.4 6.6 0.5 4.5 2.7 0.6 0.76 0.2 3.7 4.3 AA
Fidelity Spartan Short-Interm Muni Inc (FSTFX) -0.3 2.9 6.4 5.6 6.2 1.8 4.6 2.3 0.45 0.57 0.15 2.9 3.3 AA
Long-Term
USAA Tax-Exempt Long-Term (USTEX) -0.8 7 9.7 4.3 12.1 -5.0 5.4 4.6 0.54 1 0.32 5.8 15.5 AA
SAFECO Municipal Bond Investment (SFCOX) -0.8 5.9 10.3 5 14.1 -6.1 5.6 4.5 0.61 1.14 0.36 7.5 22.7 AA
Vanguard Ins Long-Term Tax-Ex Invt (VILPX) -1.5 5.7 10 4.2 13.6 -2.9 6 4.4 0.18 1.04 0.33 6.5 8.5 AAA
Fidelity Spartan Municipal Income (FHIGX) -0.8 5.5 10.4 5 12.2 -2.4 6 4 0.46 1 0.32 7.4 15.1 AA
Northern Tax-Exempt (NOTEX) -1.0 5.2 9.8 4.7 12.4 -4.2 5.4 3.9 0.85 1 0.32 7.4 13.8 AA
Vanguard Long-Term Tax-Exempt (VWLTX) -1.5 5.2 10.1 4.6 13.4 -3.5 5.8 4.5 0.17 1.14 0.36 7.1 9.1 AAA
T Rowe Price Tax-Free Income (PRTAX) -0.7 5.1 9.2 4.3 12.2 -3.9 5.2 4.3 0.55 0.92 0.29 5.6 13.9 AA
Dreyfus Municipal Bond (DRTAX) -1.1 4.6 7.1 2.7 11.9 -5.9 3.9 4.2 0.72 1.02 0.32 5.6 13.1 AA
*As of April 30, 2004.

Sources: AAII’s Guide to the Top Mutual Funds and Quarterly Low-Load Mutual Fund Update, and fund prospectuses.

DEFINITIONS OF RISK TERMS

    Average Credit Quality: An average of each bond’s credit rating, weighted by the relative size in the portfolio. AAA is the highest investment grade and BAA is the lowest; anything below falls into the “junk” category. Lower ratings increase yields to offset greater bondholder risks.

    Average Duration: A measure of a fund’s interest rate sensitivity—the higher the duration of a bond fund, the higher the risk. High coupon rates and shorter maturities lessen duration, while longer maturities and lower coupon rates make duration greater.

    Average Maturity (Yrs): A weighted average of all the effective maturities of the bonds in a portfolio. The longer the maturity of the bond fund, the greater the impact on return when interest rates change.