Vanguard Ultra Short-Term Tx-Ex Adm (Vanguard Short-Term Tax-Exempt ) Fonds

The fund employs an active management approach, investing mainly in state and local municipal bonds. Under normal circumstances, it invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities whose income is exempt from federal income tax. The fund typically invests at least 75% of its assets in municipal bonds.