Vanguard Short-Term Tax-Exempt Fund to change name

TheShadow

https://www.sec.gov/Archives/edgar/data/225997/000168386322007930/f23876d1.htm

497 1 f23876d1.htm SHORT-TERM TAX-EXEMPT FUND PS 045A

Vanguard Short-Term Tax-Exempt Fund

Supplement Dated December 22, 2022, to the Prospectus and Summary Prospectus Dated February 25, 2022
Important Changes to Vanguard Short-Term Tax-Exempt Fund

Fund Name Change

Effective on or about February 28, 2023, Vanguard Short-Term Tax-Exempt Fund (the Fund) will change its name to Vanguard Ultra-Short-Term Tax-Exempt Fund.

The Fund's investment objective, strategies, and policies will remain unchanged.

© 2022 The Vanguard Group, Inc. All rights reserved.

PS 045A 122022

Vanguard Marketing Corporation, Distributor.



Vanguard Municipal Bond Funds

Supplement Dated December 22, 2022, to the Statement of Additional Information Dated February 25, 2022

Important Changes to Vanguard Short-Term Tax-Exempt Fund

Fund Name Change

Effective on or about February 28, 2023, Vanguard Short-Term Tax-Exempt Fund (the Fund) will change its name to Vanguard Ultra-Short-Term Tax-Exempt Fund.

The Fund's investment objective, strategies, and policies will remain unchanged.

© 2022 The Vanguard Group, Inc. All rights reserved.

SAI 045A 122022

Vanguard Marketing Corporation, Distributor.

yogibearbull

This is interesting. If more fund companies create (or change to) ultra-ST muni, M* may have to introduce a new category. Right now, M* has only ST muni with < 4.0 duration.

M* does have taxable ultra-ST (duration < 1.0) and ST (duration 1.0-3.5).

Vanguard ST muni VWSTX/ VWSUX has duration 1.1. For now, only the name will change to Ultra-ST Muni, not the objectives.

Vanguard also has limited-term muni VMLTX/ VMLUX with duration 2.6 (I do own it). After some time, Vanguard may just relabel it to ST Muni.

I think that this is good streamlining.