Vanguardfi Tax-Exempt Bond ETF

Vanguard ?

Vanguard? Tax-Exempt Bond ETF

Investment Approach

Seeks to track the performance of the S&P National AMT-Free

Municipal Bond Index.

Broadly diversified exposure to investment-grade U.S. municipal

Vanguard Style View: Muni National Interm

Invests in investment-grade municipal bonds with an minimum term

to maturity greater than one month.

bond market.

Duration

Short Medium Long

Passively managed using index sampling.

High

Provides moderate current income with high credit quality.

Quality

Intermediate-duration portfolio.

Avg

Low

Central tendency

Expected range of fund holdings

Quarterly Commentary

People and Process

The pace of inflation and the timing of potential interest rate cuts

remained center stage in the second quarter of 2024. Financial

markets lost ground in April amid slow or stalled progress on inflation

and strong economic data from some markets, including the United

States. This delayed expectations for monetary easing. In May and

June, global bonds posted modest monthly gains while the economic

indicators from the United States remained relatively soft. Both the

Bank of Canada and the European Central Bank cut policy rates in

June.

Vanguard Tax-Exempt Bond ETF seeks to track the S&P National

AMT-Free Municipal Bond Index, which measures the performance of

the investment-grade segment of the U.S. municipal bond market.

The fund invests in investment-grade municipal bonds from issuers

that are primarily state or local governments or agencies whose

interest is exempt from U.S. federal income taxes and the federal

alternative minimum tax. The fund��s passive investment style uses a

sampling technique to closely match key benchmark characteristics:

sector weight, coupon, maturity, effective duration, convexity, and

credit quality. Optimized sampling is designed to avoid the expense

and impracticality of fully replicating the index. All of the fund��s

investments will be selected through the sampling process, and at

least 80% of the fund��s assets will be invested in securities held in the

index. Under normal circumstances, at least 80% of the fund��s assets

will be invested in securities whose income will be exempt from federal

income taxes and the federal AMT.

The broad U.S. investment-grade taxable bond market returned

0.08% (as measured by the Bloomberg U.S. Aggregate Float

Adjusted Index).

Munis had marginally better returns than the broad taxable market.

The fund��s benchmark index, the S&P National AMT-Free Municipal

Bond Index, returned 0.16% for the quarter.

For the 12 months ended June 30, the fund��s benchmark returned

3.14%, while the broad U.S. taxable investment-grade bond market

returned 2.73%.

Small deviations in the fund��s performance versus that of its

benchmark index may occur because of the fund��s approach to

approximating the index and temporary pricing differences between

the fund and the index.

Vanguard Fixed Income Group

Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is

among the world��s largest equity and fixed income managers. As chief

investment officer, Gregory Davis, CFA, oversees Vanguard��s Equity

Index, Investment Strategy, Quantitative Equity, and Fixed Income

Groups. Sara Devereux, principal and global head of Fixed Income

Group, has direct oversight responsibility for all money market, bond,

and stable value portfolios managed by the Fixed Income Group. The

Fixed Income Group offers actively managed investments in U.S.

Treasury, corporate, and tax-exempt securities, as well as passively

managed index portfolios. Since 1981, it has refined techniques in

total-return management, credit research, and index sampling to seek

to deliver consistent performance with transparency and risk control.

The group has advised Vanguard Tax-Exempt Bond ETF since 2015.

Investment Manager Biographies

Justin A. Schwartz, CFA, Head of Municipal Index and Money Markets.

Portfolio manager. Advised the fund since 2023. Worked in

investment management since 2004. B.S., University of Richmond.

As of June 30, 2024

Vanguard Tax-Exempt Bond ETF

Total Returns

Expense

Ratio

Tax-Exempt Bond ETF (8/21/2015)

Year

to Date

1 Year

3 Years

5 Years

Since

Inception

0.05%

Net Asset Value

��

0.20%

-0.23%

3.14%

-0.78%

1.16%

2.18%

Market Price

��

-0.15

-0.59

2.83

-0.90

1.10

2.15

��

0.16

-0.26

3.14

-0.73

1.19

2.21 1

S&P National AMT-Free Municipal Bond

Index

1

Quarter

Since inception of the share class, 8/21/2015..

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so

investors�� shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For

performance data current to the most recent month-end, visit our website at performance. The performance of an index is not an exact

representation of any particular investment, as you cannot invest directly in an index. Figures for periods of less than one year are cumulative returns. All other

figures represent average annual returns. Performance figures include the reinvestment of all dividends and any capital gains distributions. All returns are net of

expenses.

Market price returns are calculated using the midpoint between the bid and offer price at the time NAV is calculated, typically 4 p.m., Eastern time.

As of June 30, 2024

Vanguard Tax-Exempt Bond ETF

Quarterly Returns

Year-End

Year

1st Quarter

2nd Quarter

2024

-0.44%

2023

2.78

-0.05

2022

-5.87

2021

-0.46

2020

-0.41

0.20%

3rd Quarter

4th Quarter

Tax-Exempt

Bond

ETF

S&P

National

AMT-Free

Muni Bond Idx

Assets

(Millions)

��

��

��

��

-3.64%

7.29%

6.20%

6.24%

$32,963

-2.89

-3.23

3.80

-8.18

-8.10

1.52

-0.42

0.82

1.45

1.59

14,959

2.46

1.04

1.86

5.01

4.95

10,349

31,877

24,470

2019

2.82

2.28

1.59

0.62

7.50

7.42

6,801

2018

-1.22

0.85

-0.24

1.57

0.94

1.01

3,970

2017

1.23

1.90

1.17

0.57

4.96

5.09

2,235

2016

1.49

2.67

-0.32

-3.42

0.31

0.36

659

��

��

0.44

1.77

2.22

2.14

135

2015 1

1

Since inception of the share class, 8/21/2015.

As of June 30, 2024

Vanguard Tax-Exempt Bond ETF

Recent Dividends and Distributions

Ex-Dividend

Date

Income

Total

Dividend

June 3, 2024

$0.13

$0.13

May 2, 2024

0.13

0.13

April 2, 2024

0.13

0.13

March 4, 2024

0.13

0.13

February 2, 2024

0.13

0.13

December 26, 2023

0.13

0.13

December 4, 2023

0.13

0.13

November 2, 2023

0.12

0.12

October 3, 2023

0.12

0.12

September 5, 2023

0.12

0.12

August 2, 2023

0.12

0.12

July 5, 2023

0.12

0.12

June 2, 2023

0.12

0.12

May 2, 2023

0.12

0.12

April 4, 2023

0.11

0.11

March 2, 2023

0.12

0.12

February 2, 2023

0.11

0.11

December 27, 2022

0.11

0.11

December 2, 2022

0.11

0.11

November 2, 2022

0.09

0.09

October 4, 2022

0.10

0.10

September 2, 2022

0.09

0.09

August 2, 2022

0.09

0.09

July 5, 2022

0.08

0.08

June 2, 2022

0.08

0.08

May 3, 2022

0.07

0.07

April 4, 2022

0.07

0.07

March 2, 2022

0.08

0.08

February 2, 2022

0.07

0.07

December 27, 2021

0.07

0.07

December 2, 2021

0.08

0.08

November 2, 2021

0.07

0.07

October 4, 2021

0.08

0.08

September 2, 2021

0.07

0.07

August 3, 2021

0.07

0.07

July 2, 2021

0.08

0.08

As of June 30, 2024

Vanguard Tax-Exempt Bond ETF

Fund Facts

Fund Number

Ticker

Intra-day Ticker

Benchmark Ticker

CUSIP Number

Assets (millions)

Inception

Expense Ratio

(as of 2/2024)

4391

VTEB

VTEB.IV

SPMUNUST

922907746

Volatility Measures

R-Squared

Beta

S&P National AMT-Free Muni Bond Idx

1.00

1.00

Bloomberg Municipal Bond Index

0.99

0.96

R-squared and beta are calculated from trailing 36-month fund returns relative

to the associated benchmark.

$32,963

8/21/2015

0.05%

Distribution by Credit Quality

% of Portfolio

AAA

AA

Distribution by Issuer

A

% of Portfolio

19.6%

60.0

18.2

BBB

2.5

0.1

Asset-Backed

0.0%

BB

Commercial Mortgage-Backed

0.0

B

0.0

Finance

0.0

Not Rated

-0.4

Foreign

0.0

Total

Government Mortgage-Backed

0.0

Industrial

0.0

Treasury/Agency

0.0

Utilities

0.0

Credit-quality ratings are measured on a scale that generally ranges from AAA

(highest) to D (lowest). ��NR�� is used to classify securities for which a rating is

not available. NR securities may include a fund��s investment in Vanguard

Market Liquidity Fund or Vanguard Municipal Low Duration Fund, each of

which invests in high-quality money market instruments and may serve as a

cash management vehicle for the Vanguard funds, trusts, and accounts. U.S.

Treasury, U.S. Agency, and U.S. Agency mortgage-backed securities appear

under ��U.S. Government.�� Credit-quality ratings for each issue are obtained

from Moody��s and S&P, and the higher rating for each issue is used.

Other

100.0

Total

100.0%

Distribution by Stated Maturity

Largest State Concentrations

% of

Portfolio

New York

24.1

California

17.1

Texas

10.9

Illinois

5.7

New Jersey

4.7

Massachusetts

4.5

Pennsylvania

3.5

Florida

3.2

Washington

2.8

Maryland

Total

As of June 30, 2024

100.0%

1.9

78.4%

% of

Portfolio

Under 1 Year

5.7%

1 to 3 Years

8.7%

3 to 5 Years

7.9%

5 to 10 Years

18.8%

10 to 20 Years

29.4%

20 to 30 Years

26.1%

Over 30 Years

3.4 %

Total

100.0%

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