Vanguard Limited-Term Tax-Exempt Fund Admiral Shares

This cost-efficient municipal bond fund is designed to deliver income that is not subject to federal taxation, often making it an attractive option for investors in higher income tax brackets. It primarily invests in high-quality municipal bonds with relatively short maturities, exhibiting an average interest rate sensitivity (duration) of approximately two years, which is somewhat longer than its Short-Term Tax-Exempt Fund counterpart. A key risk involves interest rate fluctuations; both increases and decreases in rates could lead to a reduction in bond prices or eventually diminish the income the fund provides. Individuals desiring a modest, federally tax-exempt income stream who are also prepared to accept some variability in their income and the fund's share price may find this investment suitable.