VWAHX [Vanguard High-Yield Tax-Exempt Fund]

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keith6014
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VWAHX [Vanguard High-Yield Tax-Exempt Fund]

Post by keith6014 »

Does VWAHX avoid AMT?
John3754
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Re: VWAHX

Post by John3754 »

Nope.
rkhusky
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Re: VWAHX

Post by rkhusky »

The portfolio page for Vanguard High-Yield Tax-Exempt Fund Investor lists 16.9% for the percentage of the fund's income subject to the AMT.
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baw703916
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Re: VWAHX

Post by baw703916 »

rkhusky wrote:The portfolio page for Vanguard High-Yield Tax-Exempt Fund Investor lists 16.9% for the percentage of the fund's income subject to the AMT.
Note that per SEC requirements, this number has to be less than 20% for a fund to bear the name "tax-exempt".
Most of my posts assume no behavioral errors.
Topic Author
keith6014
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Re: VWAHX [Vanguard High-Yield Tax-Exempt Fund]

Post by keith6014 »

Good to know.

I will look into CEF National Munis which are tax exempt.
Sidney
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Re: VWAHX [Vanguard High-Yield Tax-Exempt Fund]

Post by Sidney »

The rest of VG TE funds do not hold PABs.
I always wanted to be a procrastinator.
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baw703916
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Re: VWAHX [Vanguard High-Yield Tax-Exempt Fund]

Post by baw703916 »

PABs are one reason this fund is "high yield". Since they aren't really tax free for everyone, they carry higher interest rates, all else being equal. Which may be good if you aren't paying AMT (higher yield for same credit quality), but not if you are paying AMT.
Most of my posts assume no behavioral errors.
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