VTEB ETF

Municipal bonds are most suited for higher income investors who want to reduce taxable income yet have some fixed income. Here are some tips to see if they are appropriate. This article covers ten exchange-traded funds in five Lipper Municipal National Bond Categories and explains why investors might be interested in each category. I expect interest rates to stay higher for longer which favors intermediate duration funds.

Right now, the municipal bond space has a trifecta of tailwinds blowing in its favor. That said, the time is right for investors who have not yet considered adding munis to their existing bond portfolio.

With an incoming presidential administration in 2025, municipal bonds are in play as infrastructure plans and other project initiatives could shape the muni debt space in the new year. On that note, Vanguard has a pair of muni bond-focused exchange-traded funds (ETFs) to consider.

In a changing bond market landscape, more wealth managers are recommending municipal bonds. The Federal Reserve is set to ease monetary policy and a new president will take office in 2025.

Forthcoming market volatility from an election year may have fixed income investors shying away from bonds. However, it's an ideal time to get municipal debt exposure.

A forthcoming presidential election might create some angst among prospective investors in municipal bonds. However, history typically shows that election years don't produce major volatility swings.

VTEB is a straightforward municipal bond index ETF offered by Vanguard, featuring a tax-advantaged 3.0% dividend yield. Many investors may find that other ETFs offer higher after-tax yields and additional advantages compared to VTEB.

Municipal bonds are praised for the tax-exempt income they offer to investors seeking fixed income. A deeper examination reveals the concrete benefits that municipal bond sales can bring to the communities receiving the funding.

Record issuance in municipal bonds is injecting the debt market with a healthy dose of supply. Combined with elevated yields, this puts municipal bonds in play for any bond portfolio to benefit.