497K 1 pennsylvaniatax-exemptmmfund.htm VANGUARD PENNSYLVANIA TAX-EXEMPT MONEY MARKET FUND pennsylvaniatax-exemptmmfund.htm - Generated by SEC Publisher for SEC Filing

 

Vanguard Pennsylvania Tax-Exempt Money Market 
Fund Summary Prospectus 
March 29, 2011 
Investor Shares 
 
Vanguard Pennsylvania Tax-Exempt Money Market Fund Investor Shares (VPTXX) 
 
 
 
 
The Fund’s statutory Prospectus and Statement of Additional Information dated 
March 29, 2011, are incorporated into and made part of this Summary 
Prospectus by reference. 
Before you invest, you may want to review the Fund’s Prospectus, which 
contains more information about the Fund and its risks. You can find 
the Fund’s Prospectus and other information about the Fund online at 
www.vanguard.com/prospectus. You can also get this information at no 
cost by calling 800-662-7447 or by sending an e-mail request to 
online@vanguard.com. 
 
 
 
 
The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or 
passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense. 

 


 

Investment Objective
The Fund seeks to provide current income that is exempt from both federal and Pennsylvania personal income taxes while maintaining a stable net asset value of $1 per share. The Fund is intended for Pennsylvania residents only.

Fees and Expenses
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund.

Shareholder Fees
(Fees paid directly from your investment)

Sales Charge (Load) Imposed on Purchases  None 
Purchase Fee  None 
Sales Charge (Load) Imposed on Reinvested Dividends  None 
Redemption Fee  None 
Account Service Fee (for fund account balances below $10,000)  $20/year 

 

Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)

Management Expenses  0.14% 
12b-1 Distribution Fee  None 
Other Expenses  0.03% 
Total Annual Fund Operating Expenses  0.17% 

 

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Example

The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. It illustrates the hypothetical expenses that you would incur over various periods if you invest $10,000 in the Fund’s shares. This example assumes that the Fund provides a return of 5% a year and that operating expenses remain as stated in the preceding table. The results apply whether or not you redeem your investment at the end of the given period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

1 Year  3 Years  5 Years  10 Years 
$17  $55  $96  $217 

 

Primary Investment Policies
The Fund invests at least 80% of its assets in a variety of high-quality, short-term Pennsylvania municipal securities whose income is exempt from federal and Pennsylvania taxes. To be considered high-quality, a security generally must be rated in one of the two highest credit-quality categories for short-term securities by at least two nationally recognized statistical rating organizations (NRSROs) (or by one, if only one NRSRO has rated the security). If unrated, the security must be determined by Vanguard to be of quality equivalent to those in the two highest credit-quality categories for short-term securities. The Fund invests in securities with effective maturities of 397 days or less, maintains a dollar-weighted average maturity of 60 days or less, and maintains a dollar-weighted average life of 120 days or less.

Primary Risks
The Fund is designed for investors with a low tolerance for risk; however, the Fund’s performance could be hurt by:

State-specific risk, which is the chance that developments in Pennsylvania will adversely affect the securities held by the Fund. Because the Fund invests primarily in securities issued by Pennsylvania and its municipalities, it is more vulnerable to unfavorable developments in Pennsylvania than are funds that invest in municipal securities of many states. Unfavorable developments in any economic sector may have far-reaching ramifications on the overall Pennsylvania municipal market.

Income risk, which is the chance that the Fund’s income will decline because of falling interest rates. Because the Fund’s income is based on short-term interest rates—which can fluctuate significantly over short periods—income risk is expected to be high.

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Credit risk, which is the chance that the issuer of a security will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that security to decline. Credit risk should be very low for the Fund because it invests primarily in securities that are considered to be of high quality.

Manager risk, which is the chance that poor security selection will cause the Fund to underperform relevant benchmarks or other funds with a similar investment objective.

Nondiversification risk, which is the chance that the Fund’s performance may be hurt disproportionately by the poor performance of relatively few securities. The Fund is considered nondiversified, which means that it may invest a greater percentage of its assets in the securities of particular issuers as compared with other mutual funds.

An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the Fund.

Annual Total Returns
The following bar chart and table are intended to help you understand the risks of investing in the Fund. The bar chart shows how the performance of the Fund has varied from one calendar year to another over the periods shown. The table shows how the average annual total returns compare with those of a comparative benchmark, which has investment characteristics similar to those of the Fund. Returns for the Pennsylvania Tax-Exempt Money Market Funds Average are derived from data provided by Lipper Inc. Keep in mind that the Fund’s past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447.

Annual Total Returns — Vanguard Pennsylvania Tax-Exempt Money Market Fund Investor Shares


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During the periods shown in the bar chart, the highest return for a calendar quarter was 0.92% (quarter ended June 30, 2007), and the lowest return for a quarter was 0.02% (quarter ended March 31, 2010).

Average Annual Total Returns for Periods Ended December 31, 2010

  1 Year  5 Years  10 Years 
Vanguard Pennsylvania Tax-Exempt Money Market Fund  0.12%  1.94%  1.79% 
Pennsylvania Tax-Exempt Money Market Funds Average  0.00%  1.58%  1.42% 

 

Investment Advisor
The Vanguard Group, Inc.

Portfolio Manager

John Carbone, Principal of Vanguard. He has managed the Fund since 2011.

Purchase and Sale of Fund Shares
You may purchase or redeem shares online through our website (vanguard.com), by mail (The Vanguard Group, P.O. Box 1110, Valley Forge, PA 19482-1110), or by telephone (800-662-2739). The following table provides the Fund’s minimum initial and subsequent investment requirements.

Account Minimums  Investor Shares 
To open and maintain an account  $3,000 
To add to an existing account  $100 (other than by Automatic Investment Plan, 
  which has no established minimum) 

 

Tax Information
The Fund’s distributions may be taxable as ordinary income or capital gain. A majority of the income dividends that you receive from the Fund are expected to be exempt from federal and state income taxes. However, a portion of the Fund’s distributions may be subject to federal, state, and local income taxes.

Payments to Financial Intermediaries
The Fund and its investment advisor do not pay financial intermediaries for sales of Fund shares.

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Vanguard Pennsylvania Tax-Exempt Money Market Fund Investor Shares—Fund Number 63

© 2011 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.
SP 63 032011