Vanguard To Launch Its Maiden Muni-Bond ETF

Vanguard Group is set to offer its maiden passive muni-bond exchange-traded fund focused on the $3.6 trillion U.S. municipal-bond market.

The low-cost provider’s proposed ETF once again pits it against more established rivals’ funds.

Vanguard muni-bond ETF opens new ETF-fee war

In its regulatory filing with the U.S. Securities and Exchange Commission Tuesday, Pennsylvania-based Vanguard disclosed it is looking to add a passively managed broad-based municipal bond fund to its portfolio. The Vanguard Tax-Exempt Bond Index Fund and its ETF share class will track the S&P National AMT-Free Municipal Bond Index.

The new launch will lower the already-low price floor in the...