Vanguard Short Duration Tax-Exempt Bond ETF

VSDM

Market cap $204M

A Morningstar report compared the performance of a collection of short-term bond funds versus a core index. The result was the short-term bond collective outpacing the core index, making them an ideal alternative in the current times of sticky inflation.

The tax exempt status of municipal bonds could be in jeopardy as Congress mulls over whether to tax the income from these debt issues. In the meantime, Vanguard has eight ETFs to contemplate when looking to attain muni exposure.

These bond ETFs from Vanguard hold promise.

On Thursday, Vanguard released two new active bond ETFs. These funds offer different perspectives in terms of municipal bond investing.