The Vanguard Tax-Managed Balanced Fund (VTMFX) is a conservative allocation mutual fund made available to investors through the Vanguard Group. Established in 1994, this mutual fund seeks to provide investors with tax-efficient returns generated by federally tax-exempt income, long-term capital appreciation and current taxable income in a modest amount. Typically, the fund’s $8.0 billion in assets are invested equally between the mid- and large-capitalization segments of the U.S. stock market and federally tax-exempt municipal bonds.

This fund invests approximately 50% to 55% of its assets in municipal securities and the balance in common stocks. The fixed income portion of the fund is concentrated in high-quality municipal securities with a dollar-weighted average maturity expected to be between 6 and 12 years. At least 75% of the municipal bonds purchased by the fund will be rated in one of the top three credit-rating categories.

The mutual fund has achieved a 7.60% average annual return rate since inception and expense ratio of 0.09%. A minimum initial investment of $10,000 is required from investors. Top holdings within the fund include Microsoft Corp., Apple Inc., Inc. and Alphabet Inc.

Top 10 Holdings (12.77% of Total Assets)

NameSymbol% Assets
Microsoft CorpMSFT2.82%
Apple IncAAPL2.54% IncAMZN1.63%
Alphabet Inc Class AGOOGL1.12%
Tesla IncTSLA0.94%
Meta Platforms Inc Class AFB0.89%
Alphabet Inc Class CGOOG0.88%
Berkshire Hathaway Inc Class BBRK.B0.65%
JPMorgan Chase & CoJPM0.58%

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