Vanguard Massachusetts Tax-Exempt Fund

The primary aim of this fund is to generate a substantial amount of current income, free from both federal and Massachusetts personal income taxes. Exclusively available to Massachusetts residents, it principally allocates its investments to high-quality municipal bonds issued by state and local governments within Massachusetts, along with regional and public financing authorities. Under normal operating conditions, a minimum of 80% of the fund's holdings will consist of securities that provide income exempt from federal and Massachusetts state taxes. Although there are no specific limitations on the maturities of individual bonds, the portfolio's dollar-weighted average maturity typically ranges from 10 to 25 years. With an average duration of roughly 6 to 10 years, its net asset value is considerably more responsive to changes in interest rates compared to bond funds with shorter durations. This makes it a suitable option for Massachusetts-based investors who desire income free from federal and state taxes and are comfortable assuming the associated interest rate risk.