Vanguard Long-Term Tax-Exempt Bond ETF

VTEL

Market cap $285M

Vanguard Long-Term Tax-Exempt Bond ETF offers broad exposure to long-term, high-quality municipal bonds with minimal credit risk and low fees. VTEL tracks an index using a sampling approach, resulting in wide diversification but little selectivity, and is best suited for buy-and-hold investors. The fund's 4.15% SEC yield may not persist through interest rate cycles, as all bonds were purchased recently at current rates.

Jay Jacobs, BlackRock U.S. Head of Equity ETFs, and Roger Hallam, Vanguard global head of rates, share their outlooks for the rest of year, key trends to watch in the ETF space and the strategy behind their firms' latest funds with CNBC's Dominic Chu.

Roger Hallam, Vanguard global head of rates, sits down with CNBC's Dominic Chu to discuss the firm's new active ETFs launching this week, including its Vanguard Government Securities Active ETF. Hallam gets into the strategy behind the fund and why now is the time to go active.

On Thursday, Vanguard expanded its selection of fixed income ETFs with the launch of the Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and the Vanguard New York Tax-Exempt Bond ETF (MUNY).  Both of these new Vanguard funds offer a distinct strategy for building municipal bond exposure.