Reply To: Loss on Vanguard High-Yield Tax-Exempt Fund held 6 months or less

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#1985
Kaye Thomas
Moderator

I don’t know. I saw a posting on the Bogleheads forum indicating most but not all Vanguard bond funds follow this practice. This is just a guess, but it may be that for certain types of TE funds it’s hard to justify the admin costs of declaring daily dividends and making monthly payments. If you potentially have this issue you really have to check the particular mutual fund. The answer may not be in the summary prospectus, but it should be in the full prospectus.