Morningstar Rating

ETF Research and Analysis

by Thomas Boccellari
Suitability
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 has a competitive 0.25% fee, which compares favorably to the average take of both its ETF and mutual fund peers.
The fund’s short duration makes it less susceptible to interest-rate risk. Read more 

Bear Case

Tracking a market-capitalization weighted index 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 of late.
The fund’s tax-equivalent yield is currently less than taxable bonds, which diminishes the tax benefit. Read more 

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