MUNI ETF

MUNI is an actively-managed muni bond ETF from PIMCO. Although the fund's dividends are tax-advantaged, its 3.4% dividend yield is too low for a buy rating. Lots of ETFs provide higher after-tax income to effectively all investors, including CARY and JAAA.

The PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund ETF provides tax-free income by investing in high-quality municipal bonds. This ETF holds a varied selection of U.S. dollar-denominated intermediate-term municipal bonds. While facing competition from other municipal bond ETFs, MUNI has demonstrated strong performance and a well-diversified geographic allocation.

PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund ETF is an actively managed municipal bond fund with a flexible strategy and high turnover. The MUNI ETF has a higher risk in credit rating but a lower risk in maturity compared to iShares National Muni Bond ETF. It is more diversified geographically, with a lower allocation to New York and California.

In today's high rate environment, understanding the impact of high rates on bonds, particularly municipal bonds, makes a difference between capturing alpha opportunity or simply taking on additional risk.