Vanguard California Intermediate-Term Tax-Exempt Fund Admiral Shares 

This fund aims to deliver a higher current income stream compared to shorter-duration bonds, while also exhibiting less significant price volatility than long-term bonds. It is exclusively designed for individuals residing in California. The portfolio primarily consists of high-quality municipal bonds issued by various California entities, including state and local governments, as well as regional authorities and public financing bodies. Under typical conditions, more than 80% of the fund's assets will be invested in securities that generate income exempt from both federal and California state income taxes. Although there are no specific limitations on the maturities of individual securities, the fund's dollar-weighted average maturity is generally expected to range between 6 and 12 years. A primary risk for the fund involves interest rate fluctuations. Both rising and falling rates can adversely affect the fund, potentially leading to lower bond prices or a future reduction in the income it generates. This fund could be a suitable option for investors seeking tax-exempt income at both the federal and California state levels, provided they are comfortable with moderate fluctuations in both its share price and income output. It is important to note that the Vanguard California Intermediate-Term Tax-Exempt Fund is a standalone product, separate and distinct from the Vanguard California Tax-Exempt Bond ETF (VTEC). Differences in their respective sizes, specific investment processes, and underlying holdings are expected to result in varied investment returns between the two.