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., Amazon.com Inc. and Alphabet Inc.
Top 10 Holdings (12.77% of Total Assets)
| Name | Symbol | % Assets |
|---|---|---|
| Microsoft Corp | MSFT | 2.82% |
| Apple Inc | AAPL | 2.54% |
| Amazon.com Inc | AMZN | 1.63% |
| Alphabet Inc Class A | GOOGL | 1.12% |
| Tesla Inc | TSLA | 0.94% |
| Meta Platforms Inc Class A | FB | 0.89% |
| Alphabet Inc Class C | GOOG | 0.88% |
| NVIDIA Corp | NVDA | 0.72% |
| Berkshire Hathaway Inc Class B | BRK.B | 0.65% |
| JPMorgan Chase & Co | JPM | 0.58% |