The team at a $7.2-trillion-AUM (as of December 31) mutual fund giant recently added another ETF.

Sara Devereux Vanguard Principal, Global Head of Fixed Income

Last week, Sara Devereux, global head of the fixed income group at Vanguard [profile], unveiled the launch of the Vanguard Short-Term Tax-Exempt Bond ETF (VTES on the NYSE Arca). The new index fund is a series of the Vanguard Wellington Fund.

VTES' inception date was March 7. The new fund comes with an expense ratio of seven basis points.

VTES is designed to track the S&P 0-7 Year National AMT-Free Municipal Bond Index. S&P Dow Jones Indices LLC serves as the new fund's index provider, the Vanguard Group, Inc. as investment advisor, Vanguard's Steve McFee as portfolio manager, Vanguard as dividend-paying agent and transfer agent, and Vanguard Marketing Corporation (VMC) as distributor and principal underwriter.

Devereux describes VTES as designed "to optimize tax efficiency for investors seeking to allocate to the shorter end of the municipal bond market."

"The new ETF complements our broad fixed income lineup and provides clients with another avenue to tap our municipal bond team's talent and capabilities," Devereux states.

VTES' other service providers include PricewaterhouseCoopers LLP as independent accounting firm and State Street Bank and Trust Company as custodian. 

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