Vanguard CA Intermediate-Term Tax-Exempt Fund (VCAIX)

Vanguard CA Intermediate-Term Tax-Exempt fund (VCAIX) is an actively managed mutual fund. This popular fixed income fund invests mainly in high-quality municipal bonds issued by California state and local governments, as well as by regional governmental and public financing authorities. Most of assets (80%) will be invested in securities whose income is exempt from federal and California state taxes.

VCAIX Fund Profile

• Fund Inception Date: 03/04/1994
• Ticker Symbol: VCAIX
• CUSIP: 922021308
• Beta (3yr): 0.93
• Rank in category (YTD): 39%
• Category: Muni California Intermediate
• Distribution Yield: 2.94%
• Capital Gains: -
• Expense Ratio: 0.20%
• Net Assets: $ 9.29 billion
• Number of Years Up: 17 years
• Number of Years Down: 3 years
• Annual Turnover Rate: 11%

This Vanguard CA Intermediate-Term Tax-Exempt fund is managed by James M. D'Arcy and Adam M. Ferguson. The current yield is 2.94%. It has a low expense fee of 0.20% per year. The total net assets are $9.3 billion. Its portfolio turnover rate is only 11%.

Vanguard California Intermediate-Term Tax-Exempt Fund Return

This California muni bond fund is ranked with 5 star & silver rating by Morningstar. It has returned 5.07% over the past 1 year, 3.80% over the past 3 year, and 4.85% over the past 5 year. In 2014, the total return is 8%. Past 3 year returns are:

• Year 2015: 0.63% (YTD)
• Year 2014: 8.00%
• Year 2013: -0.83%
• Year 2012: 6.63%

The current portfolio has 1718 holdings. The average coupon is 4.2%. This California muni bond mutual fund has duration of 4.8 year. Top 5 sectors are State and Local General Obligation, Education, Water & Sewer, Transportation, and Health.

More: Top California Municipal Bond CEFs 2014

The investment risks are state specific risk, interest rate risk, call risk, credit risk, liquidity risk, manager risk, income risk, non-diversification risk.

Pros:

• The yield income is tax free.
• The expense fee is low.

Cons:

• Only state specific.