Because municipal-bond interest is exempt from federal taxes, municipal-bond funds are most appropriate for investors in high tax brackets and fit best in taxable accounts. IShares Short-Term National AMT-Free Municipal Read more
The fund’s tax equivalent yield is currently higher than comparable taxable-bond yields.
Its short duration limits the fund’s interest-rate sensitivity, which can help it perform better if interest rates rise sharply. Read more
There are cheaper alternatives.
Market-cap weighting increases the fund’s exposure to the most indebted issuers.
High-profile defaults and financial struggles in Detroit, Stockton, and Puerto Rico have increased volatility in the muni market. Read more
This ETF Takes the Euro Out of European Dividend Payers Watch more