Morningstar Rating

ETF Research and Analysis

by Thomas Boccellari
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 

Bull Case

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 

Bear Case

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 

Low-Cost Exposure to High-Quality Companies 
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