Vanguard Ohio Long-Term Tax-Exempt Fund (VOHIX) Fund Overview

Vanguard Ohio Long-Term Tax-Exempt Fund (VOHIX) Financial Services Profile

Vanguard Ohio Long-Term Tax-Exempt Fund (VOHIX) offers Ohio residents tax-exempt income by investing in high-quality Ohio municipal bonds. With a focus on long-term maturities, the fund appeals to investors in higher tax brackets seeking stable, state-specific tax advantages within the broader asset management landscape.

What Is the Investment Thesis for VOHIX?

Vanguard Ohio Long-Term Tax-Exempt Fund (VOHIX) presents a focused investment opportunity for Ohio residents seeking tax-advantaged income. The fund's primary value driver is its ability to provide income exempt from both federal and Ohio state taxes, appealing to high-tax-bracket individuals. With a beta of 1.21, the fund exhibits more volatility than the market average. A key growth catalyst is the continued demand for tax-exempt investments among Ohio residents, particularly as state and federal tax rates fluctuate. However, the fund's susceptibility to interest rate changes, given its long-term bond holdings, poses a risk.

Based on FMP financials and quantitative analysis

VOHIX Key Highlights

Market capitalization of $1.52 billion indicates a substantial asset base within the Ohio municipal bond market.

• The fund's investment objective is to provide current income exempt from both federal and Ohio personal income taxes, appealing to high-tax-bracket Ohio residents.
• At least 80% of the fund’s assets are invested in securities whose income is exempt from federal and Ohio state taxes, ensuring a strong focus on tax-advantaged investments.
• The fund's dollar-weighted average maturity is expected to be between 10 and 25 years, making it more susceptible to interest rate changes.
• The fund's beta of 1.21 suggests it is more volatile than the broader market.

Who Are VOHIX's Competitors?

VOHIX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are VOHIX's Key Strengths?

Tax-exempt income for Ohio residents.

• Focus on high-quality municipal bonds.
• Low-cost structure.
• Exclusively invests in Ohio municipal bonds

What Are VOHIX's Weaknesses?

Susceptibility to interest rate changes.

• Limited to Ohio municipal bonds.
• No dividend yield.
• Higher beta than market average

What Are the Key Risks for VOHIX?

Rising interest rates negatively impacting bond values.

• Changes in federal or Ohio tax laws reducing the attractiveness of tax-exempt investments.
• Economic downturn in Ohio leading to credit downgrades of municipal bonds.
• Competition from other tax-exempt bond funds.

What Are VOHIX's Competitive Advantages?

• Tax-exempt status for Ohio residents.
• Focus on high-quality Ohio municipal bonds.
• Low-cost structure.

What Does VOHIX Do?

Vanguard Ohio Long-Term Tax-Exempt Fund (VOHIX) was created to provide current income that is exempt from both federal and Ohio personal income taxes, specifically for Ohio residents. The fund invests primarily in high-quality municipal bonds issued by Ohio state and local governments, as well as by regional government and public financing authorities. This focus on Ohio municipal bonds allows the fund to offer income that is exempt from both federal and Ohio state taxes, making it particularly attractive to investors in higher tax brackets who reside in Ohio. Under normal circumstances, at least 80% of the fund’s assets are invested in securities whose income is exempt from federal and Ohio state taxes. While the fund does not impose limitations on the maturities of individual securities, its dollar-weighted average maturity is expected to be between 10 and 25 years. This long-term focus means that the fund's share price is more susceptible to changes in interest rates compared to shorter-term bond funds. The fund's investment strategy is designed to provide a low-cost option for investors seeking tax-exempt income within the Ohio municipal bond market. The fund maintains an average duration of approximately 6-10 years.

What Products and Services Does VOHIX Offer?

• Invests primarily in high-quality municipal bonds issued by Ohio state and local governments.
• Seeks to provide current income that is exempt from both federal and Ohio personal income taxes.
• Targets Ohio residents seeking tax-advantaged investment options.
• Maintains a dollar-weighted average maturity between 10 and 25 years.
• Focuses on securities whose income is exempt from federal and Ohio state taxes.
• Offers a low-cost municipal bond fund option.

How Does VOHIX Make Money?

• Generates income by investing in Ohio municipal bonds.
• Provides tax-exempt income to Ohio residents.
• Attracts investors seeking to minimize their federal and state tax liabilities.

What Industry Does VOHIX Operate In?

Vanguard Ohio Long-Term Tax-Exempt Fund operates within the asset management industry, specifically focusing on municipal bond funds. The market for municipal bonds is influenced by factors such as interest rates, tax policies, and the creditworthiness of state and local governments. The fund competes with other tax-exempt bond funds, including those with a national scope, but differentiates itself by focusing exclusively on Ohio municipal bonds. Demand for municipal bonds is driven by investors seeking tax-advantaged income, particularly in states with high income taxes.

Who Are VOHIX's Key Customers?

• Ohio residents in higher tax brackets.
• Investors seeking tax-exempt income.
• Individuals looking for stable, long-term investments.

VOHIX Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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